29th October 2013
More than half of consumers still have a current account with their very first bank and 45% have never thought of changing says new research.
According to a survey from comparison site, MoneySuperMarket, 58% of consumers admit to still having their current account with the first ever bank they joined.
In a poll of 1,692 the group also found a further 13% have stuck with their first bank, although, 6% of these acknowledged it is not their main current account while 7% said they are planning on switching.
Kevin Mountford, head of banking at MoneySuperMarket says:“Opening your first bank account as a child, when you become a student or when you get your first job is a major financial milestone for most people, however, remaining loyal to that bank may not necessarily be helping your bank balance.
“It is worrying that so many people are still wedded to their ‘first’ bank as loyalty very rarely pays, and while you may be very happy with your existing provider, it is still worth making sure your account is right for you.”
September saw the launch of the Current Account Switching Service, where banks on customer requests must change accounts within seven days but to date the amount of switchers has only risen by 11%.
Mountford adds: “Everyone should review their banking needs annually and ensure they are getting the most from their bank and, if necessary, switch if there is a better option elsewhere. This is particularly important if you have a packaged current account, or utilise an overdraft facility as you could be paying hundreds of pounds in unnecessary charges. It can be very easy to assume that all banks are the same, but with a vast range of fees and charges, this certainly isn’t the case.
“Many banks offer attractive switching incentives to move your main current account, but it is important to look beyond these deals and make sure the account is right for you.”