Hassle and apathy prevents current account switching
More than one third of Brits (35%) have never switched their main current account provider, with many not doing so because switching is ‘too much hassle' according to new research by N&P (Norwich and Peterborough Building Society).
Despite the impact of the recession and three quarters of people making changes to their lifestyle to save money, only one in ten people (9%) have changed their main current account in the last 12 months. Worryingly, nearly two thirds of people (64%) are not even looking to review their current account within the next 12 months.
While poor customer service, or a single bad experience, are the most likely reasons people look to switch their current account, almost one in five (17%) are of the view that all current accounts are the same.
Ewan Edwards, head of retail products at N&P, said: "Millions of people in the UK are not prepared to change their main current account because they think it would be too much hassle, they are concerned that problems will arise with direct debits or standing orders, or they simply think that all current accounts are the same.
"It has never been easier to switch current accounts and in the current economic environment where many people are feeling the pinch, it could make them some important savings. Not only does N&P have a dedicated team and a switching promise which will give customers £50 if we don't switch all their standing orders and Direct Debits within 10 working days, but, unlike most current account providers, we will not charge a fee for withdrawing local currency from an ATM, or paying with their debit card while on holiday."
Ewan Edward continued: "Withdrawals of £250 in local currency while you are on holiday can cost almost £12 with some current account providers, and with point of sale transactions often incurring a currency conversion fee, the costs can stack up quite quickly. Switching your current account to one that can save you money is simple common sense.
"Those in Scotland, particularly in Edinburgh, have the right idea and are more likely to switch providers than anyone else in the UK. Reviewing your current account needs is something people should do to make sure they are getting a good deal. It is a concern that only one in four (24%) are going to review their current account within the next year."
The research showed:
Edinburgh is the switching capital of Britain with 8 in 10 having switched current account providers at least once; overall in Scotland 7 in 10 people have switched
Bristol has the lowest rate of switching with 4 in 10 people being with the same current account provider all their life
almost 4 in 10 people (38%) said that changing their main current account would be too much hassle, put off by filling out forms and providing the necessary documents
17% thought that all current accounts were the same and therefore saw no point in switching
16 to 24 year olds most likely to review their main current account with 30% reviewing in the next 12 months, with 45 to 54 year olds least likely (21%)
one in three (31%) would switch current accounts to get better offers, including a free overdraft, free ATM withdrawals overseas.