Brits believe they manage personal finances well

Britons are confident about managing their finances, according to new research from Abbey.

86 per cent stated that they managed their accounts very well or fairly well. 73 per cent monitor their bank account at least once a week, while 63 per cent are fully aware of all the transactions taking place on their account.

31 per cent claim they never run out of money each month, while 54 per cent adjust their monthly spending to ensure they never run out of money.

Britons paying down overdrafts

Only 26 per cent of Britons currently have an overdraft, and 60 per cent of these are working hard to pay it off. Only 15 per cent believed they were borrowing more on their overdraft than two years ago, while 25 per cent believed they were borrowing less.

The new breed of "savvy customer"

The research shows a new breed of 'banking savvy customers' who use technology to their advantage. 72 per cent of those surveyed use the Internet to check their accounts. 65 per cent arrange for their Direct Debits and standing orders to come out of their account immediately after payday, to avoid spending their cash before bills have been paid.

Who's the most savvy?

Scots believe they manage their finances the worst, while people from the Midlands and Wales believe they manage their finances the best.

1 Midlands and Wales - 89%

2= London - 85%

2= North - 85%

4 Rest of South - 84%

5 Scotland - 83%

However, more Scots arrange direct debits from their account after payday (70 percent), and they are least likely to run out of money (38 per cent). They check their bank accounts most often, with 49 per cent of Scots saying they check every couple of days or more.

By contrast, only 28% of Southerners outside London never run out of money and only 59% arrange direct debits from their account immediately after payday.

Steve Shore, Abbey's Head of Banking, said: "It is clear that modern British society is more confident about managing its finances. New technology, such as the Internet, is empowering customers.

"While it's encouraging to see more and more people taking charge of their finances, many of us could do more. 18 per cent of people have never switched their current account and 57 per cent have had their present current account for 10 or more years. This is despite the fact that some current accounts now offer more competitive interest rates to customers with the best rates offering up to 60 times better than the worst"

Rate Differences

The major banks (Royal Bank of Scotland, Natwest, Barclays and HSBC) offer 0.1 per cent interest on their main current accounts. Abbey's standard current account rate is 2.5 per cent AER.

Abbey is offering six per cent gross AER for people switching to Abbey using its account transfer process on balances up to £1,000. Customers need to pay in at least £1,000 a month.

Switching accounts

Abbey's switching process is simple. Customers need only sign a form and Abbey will transfer the customer's Direct Debits and standing orders. Abbey informs the customer of the progress of the transfer and if Abbey makes a mistake during the transfer process, which means that the customer is charged - by either Abbey or the bank from which they're moving - the charge will be refunded in full.

People interested in moving their bank account can log on to abbey.com for more information.