Interest in current accounts heightens ahead of switching deadline

Consumers have already started to respond to the advertising blitz from current account providers, ahead of next week's launch of the new switching service, according to data from uSwitch.com.

Visits to the uSwitch.com current account pages rose 25% in August compared to July, with first direct, Nationwide and Santander attracting the most interest. The figures come despite a report this week revealing that four in ten consumers make little effort to switch their household service providers.
 
Michael Ossei, personal finance expert at uSwitch.com says: "Banks are bracing themselves for the launch of the new switching service which will make it much easier for customers to jump ship and move their current account to a new provider. In a bid to protect their market share they have launched high profile advertising campaigns, with some running as far back as July. This is evidence that the banks' investment could be paying off.
 
"The renewed consumer interest in current accounts is great news for competition. Banks will have to work harder to both attract new customers and keep their existing ones, which means that accounts must offer better value for money and customer service.
 
"There are now some very visible benefits to switching in the form of hefty cash incentives.  first direct has increased its switching incentive from £100 to £125 and Halifax continues to offer new customers £100. Nationwide is appealing to those who tend to be in credit, offering 5% interest on balances up to £2,500 while Santander's 123 account pays 3% on anything over £3,000.
 
"From what we have seen so far, first direct, Nationwide and Santander are the frontrunners in the battle to win over customers. But, with just days to go before the new service is launched, it's all for the taking. It's important that consumers take their time before making the move, reading the small print and checking that the account suits their needs. While a cash incentive can seem very attractive, benefits such as interest on balances could be more valuable over the long-term."