Spotlight on current accounts

Despite the spotlight shining well and truly on current accounts thanks to the ongoing OFT court case, the majority of Brits are still to take action when it comes to finding themselves the best deal on their account. According to new research from online comparison site moneysupermarket.com, only one in seven (14 per cent) Brits have bothered to change current accounts in the past two years.

Of those who have made the effort to make the change, more than a third (34 per cent) did so out of frustration with the fees they were forced to pay. Nearly three in ten (28 per cent) wanted a better standard of service, and a quarter (24 per cent) simply wanted a higher interest rate on their in-credit balances.

The research acts as a warning to Barclays who reduced the fee on their overdrafts last week - just six per cent of switchers said they had done so in order to benefit from a lower interest rate when they were in the red, suggesting Barclays may not receive the stampede of customer they had hoped for.

Kevin Mountford, head of current accounts at price comparison site moneysupermarket.com, said: "Current account providers have been working hard to tempt consumers to change by offering ever enticing in-credit interest rates and new packaged options. However, our research shows that most people tend to stick with their current provider despite derisory in-credit rates and extortionate fees.

"To be blunt, banks will continue to try and get away with as much as they can until there is a real threat consumers will change providers if they don't get a better deal."