Britons are missing out on the ‘current account revolution’

Britons are failing to switch their current accounts to take advantage of the ‘current account revolution’, according to research from Abbey.

60 per cent of Britons have held their current account for ten years or more, and 18 per cent have never switched their account, despite seeing credit interest rates soar with some banks.

Banking Inertia: Why people are not switching

Abbey surveyed a representative sample of Britons to understand why they were failing to take advantage of the ‘current account revolution’. The results show that inertia is being driven by myths and a poor understanding of the switching process.

Myth 1: “65 per cent believe moving account is too much hassle”

Reality: 90 per cent of the people that have switched said switching their current account was ‘very easy’ or ‘fairly easy’. Abbey’s switching process is simple. Customers only need to sign one form, and Abbey will do the rest, arranging the transfer of all direct debits and standing orders, while keeping customers fully informed of progress.

Myth 2: “49 per cent believe all bank current accounts are similar”

Reality: The tables above show that this is not the case. The difference between the best and worst credit interest rate varies from 0.1 per cent to 6 per cent.

Myth 3: “26 per cent believe you are given no help by the bank you are moving to”

Reality: Abbey will take responsibility for the entire process. Abbey will arrange the transfer of all direct debits and standing orders. Abbey will keep the customer informed of progress, and if the customer incurs any charges during the transfer – from either Abbey or the bank from which they’re moving – Abbey will fully refund them.

Myth 4: “16 per cent believe you can’t move your overdraft”

Reality: Overdrafts of up to £5,000 can be matched and are available subject to status. Not only that, but an introductory rate of zero per cent for the first four months is available.

‘Switching Scots and Stubborn Southerners’

Scotland has the lowest proportion of people who have never switched their account, while Southerners are the least likely to switch their accounts.

Steve Shore, Head of Banking at Abbey, said: “Myths and misinformation are stopping people from joining the current account revolution. The difference between the best and worst rates is significant, and customers can greatly benefit from switching to a better rate. It is important that people realise that the switching process is not a barrier to accessing the best current account rates.”