More reasons to switch current accounts

The most popular reason for switching current accounts is for a better in credit interest rate, according to a poll of moneysupermarket.com users. 31 per cent of respondents said a better rate could persuade them to switch, 19 per cent said a cash incentive might encourage them to move, and 13 per cent said they would switch if the processes of switching were easier.

However, analysis from moneysupermarket.com has shown that the top cash incentives for moving your current account could be worth the equivalent of a 22 per cent rise in your in-credit interest rate.

Kevin Mountford, head of banking at moneysupermarket.com, said; "It is surprising to see that in credit interest rates are such a deciding factor for current account customers. The levels of interest on these accounts tend to be fairly low, meaning that unless you routinely keep large deposits in your current account, cash incentives are likely to offer far better value over the long-term.

"It is clear that many people are put off switching by the perception that it can be a complex process. The reality is that nowadays switching is fairly easy, with many banks having dedicated teams to ensure the move runs smoothly."

moneysupermarket.com has also today announced an exclusive offer with Halifax, that will give people switching to a Halifax Reward Current Account £50 on top of the £5 per month offered as part of the standard product offering subject to terms & conditions.

Kevin Mountford added; "At a time when innovation in the current account market has been sparse, Halifax has led the way with its offer of £5 a month for customers depositing £1,000 each month. Now, this exclusive deal gives an extra incentive for people to switch their current account.

"Ultimately people need different things from their current account, some are always in credit and will find that cash incentives are the best way to maximize returns, but others will need to consider various overdraft charging structures. The key is to think about how you use your current account, and then shop around for the deal that best suits your needs."

To access the exclusive Halifax Reward Account £50 switching offer please visit moneysupermarket.com/current-accounts/