Current account market shake up

Commenting on the new current account incentives being offered by a number of High Street Banks, Kevin Mountford, head of banking at MoneySupermarket.com said: "2012 has kicked off with renewed activity in the current account market as banks fight to win our custom. We have already seen a number of switching offers introduced this week; Halifax is offering £100 to new customers at the start of the switching process, HSBC is offering six per cent interest in its January current account sale and the Co-operative Bank is dropping overdraft charges for existing customers for three months.

"Consumers should consider whether, despite the initial tempting offers, these accounts offer value over time. Although consumers may not wish to switch current accounts on a regular basis, it is important to review your account from time to time to make sure it suits your financial situation, otherwise you may fail to get the best value.

"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.

"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. For those looking for a one stop, convenient solution, then packaged current accounts certainly have a part to play however, make sure you will make the most of the benefits on offer otherwise you may be paying far more than you need to. The key is to think about how you use your current account, and then shop around for the deal that best suits your needs."