No such thing as a free bank, says Which?

According to the experts at Which?, low credit interest, high overdraft charges and big fees on spending abroad means that while we may not pay a monthly sum for our current accounts, banking is not free.

The consumer champion's new research reveals that consumers could be spending as much as £1,140 a year on unauthorised overdraft charges if they bank with Santander.

Disparity around charges doesn't end there. While First Trust charges customers £185 a year for using a £200 authorised overdraft six days a month, whereas Coventry BS has no charge for a £250 authorised overdraft. Furthermore, each bank has very different ways of charging for overdrafts, making it difficult for consumers to compare accounts.

Even customers who stay out of the red are not getting a free ride from the banks. Which? found that lost interest and fees for using their card abroad could be costing consumers as much as £57 a year- and much more for those who travel overseas regularly.

Which? chief executive, Peter Vicary-Smith,  says: "Contrary to popular belief, banking is not free. Whether it's through low interest rates or high charges, we all end up paying for our current account in the end.

"The complicated ways banks present charges makes it difficult for people to work out whether they're getting a good deal. If you regularly go into the red or want a better return on your money, then the figures speak for themselves - it's worth making the switch to a more suitable account."