Skip to main content Accessibility Statement
Young couple break piggybank

Are you losing money being loyal to your bank?

A quarter of people aged between 18-34 have never switched from their childhood bank account. But switching could mean you get better interest, reduce your charges if you often use your overdraft, and more. Could you be missing out?

With less than one in three in this age group believing their bank offers relevant products to meet their needs, according to uSwitch.com, the price comparison and switching website, you could be.

The research also found many younger people have never used key products at their bank.  22% have never deposited a cheque and more than half haven’t been to a branch of their bank in the last three months.

But different banks could suit different needs, so if there’s something you want from your bank, why not try to get it elsewhere?

According to Nationwide, 27% of us haven’t switched because we feel it will be a hassle, and 13% worry about moving payments. But switching is easier and more secure than you think.

So what are you waiting for?

What should you be looking for with your bank account?

 

Do you want more interest on your money?

If you always have money in your account, and are careful about your spending, you are in a nice position to shop around for a bank that gives you interest on your credit balance. Could you be getting more with your savings?

Do you regularly spend more than is in your account?

If you do find yourself regularly going into overdraft, the most important factor to consider is any fees you could be being charged. Look for a bank account which could give you an overdraft balance up to a certain total, or fees when you go overdrawn.

Are you a student?

Student bank accounts often offer very large authorised overdrafts, some up to £3,000. If you think you may need one, you may be interested in looking for an account with one that suits your needs. Don’t forget an overdraft isn’t free money though – and you should be careful about going over the authorised limit, as it could affect your ability to borrow in the future.  

Incentives and more…

Many banks offer deals to new customers, but do be sure to check if there are strings attached! Cash incentives or monthly credits can be a nice boost, but make sure the account is right for you beyond the end of the offer.

Also think about how you like to deal with your bank. If you prefer the convenience of telephone or internet banking, make sure your bank provides this. If you prefer to bank in branch, look for one with a branch you can easily get to.  

 

How can you switch?

Most banks and building societies offer a free seven-day Current Account Switch Service. It’s backed by a guarantee that means you’ll be refunded any interest and charges on your old and new accounts if anything goes wrong in the first three years.

Once you’ve chosen a new account, the new bank or building society will ask you to fill in two forms: a current account switch agreement and an instruction to close your old account. You will need to do this at least seven working days after your new account is opened. Then, all of your incoming and outgoing payments will be moved to your new account.

You can carry on using your old account up until the day of the switch. Your old account will then be closed. 

What do you think?

We really want you to share your views, but please remember to be nice ☺
All fields are required. Check out our full commenting guidelines

By clicking on 'Post Comment', you're agreeing to our Commenting Policy

  • Mavis Baughan / 24 August 2015

    I object to the fact that the banks can take over accounts that haven't been used for many years they go into a dormant account and the Ombudsman is unable to challenge this.These are bonds held by many elderly people and to my mind is theft !!

  • John Walker / 23 August 2015

    I have been contemplating switching for some time now, the new bank is making it sound all very easy. They will make all necessary arrangements for standing orders and direct debits, both in and out of my various accounts,to be made as existing. Plus they will pay interest on credit balances, all for a set fee of £2/month/account.

  • richard smith / 23 August 2015

    I use my bank for basic things,like pay how will I be better off switching

  • David Gibbons / 23 August 2015

    switching Banks is difficult !!! -- so many Standing Orders Direct Debits etc-- can take months to sort out -- same for Utilities- I swear they deliberately try to delay transits and then double bill ! at takeovers .

  • mike / 23 August 2015

    Direct debit not standing order

  • mike / 23 August 2015

    switch standing orders o..k. except one switched and ignored by new bank urghhhhhhhhhhhhhhhhh

  • Meads T.Roger / 3 August 2015

    Hallo,Iam Thomas Roger Meads having a bank account with Lloyds T.S.B since 1968 until now 015.
    Serving with the British Army. I Retired 3-7 81.
    Now living at the above address and e-mail in Germany.April 06 become a loan.After six years 012 become my ArmyPension with Lamp Sum et. with then could setle the Loan agreement; 015 at onother address which since then have changed twice which the Bank are in informed! Have at the first adress threataning Letter from www compellogroup.co.uk Saying have not paid interest is Rising to pay or Legelaid!? Being a life British Legion member become your contact from other members to ask.Could You be of help to advise how I can setle this transaltion? Thanking You in anticapation MR. T.R.Meads