Brits spend less than an hour researching current accounts

More than half (51 per cent) of British consumers spend less than an hour researching different types of current accounts in the market according to the results of a report into switching habits conducted by Datamonitor on behalf of Santander.

The ‘Switching in the UK' report also finds that only one in three (35 per cent) of switcher customers spend more than an hour researching current accounts but, by comparison, around half spend more than an hour researching car insurance (51 per cent) and home insurance (47 per cent).

Santander estimates that Britons have collectively spent 3,504 years researching car insurance products in the past 12 months, compared to 1,368 years on choosing savings accounts and by comparison just 785 years deciding which current account to switch to.

Rod Logan from Datamonitor said: "It is interesting that people take so much longer to make a decision on car insurance or a savings account than a current account. This discrepancy is likely to result from the greater importance placed on getting a good deal for these other financial products. But many of these consumers probably don't realise that nowadays picking the right current account can make a significant difference to their finances too, so by potentially rushing a decision they may be missing the benefits available."

The report also shows that men spend considerably longer researching financial products like current accounts and savings accounts than women, taking an average of 18 minutes longer to research current accounts and 19 minutes longer to research savings accounts.

When it comes to researching current accounts a third of people (34 per cent) believe it is too much hassle to switch their provider, a much higher figure than any of the other products examined. 

Gillian Almond, Head of Santander Current Accounts, commented:   "People have historically considered current accounts to be ‘free' so they don't see the incentive for switching and view it as an unnecessary hassle.  However, if they looked into the current account market properly they would see that there are some highly significant switching incentives on offer, such as immediate cash incentives, better rewards and even preferential rates on other financial services products.

"A customer switching from a current account paying no interest to a Santander account paying 5 per cent AER would make £100 extra interest a year if they maintained an average balance of £2,000. On top of this they would be paid £100 for switching so they could make £200 extra in one year simply by having a different provider.

"To get over the perceived ‘hassle factor' many consumers feel, we have set up a dedicated switching service to help manage the switching process on the customer's behalf.  With this and the current £100 offer when you switch available until 12 December there has never been a better time to take advantage and move to a better current account."

By switching current accounts, people can find much better rates as well as rewards.   If customers switch to Santander today they can get 5 per cent AER (fixed) interest for 12 months on balances up to £2,500 and £100 cashback.

For more information, visit santander.co.uk.