Switching current account can save thousands |
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Published
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Fri, 08 Apr 2005 01:00
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Are you still continuing with your old current account? If yes, then you’re losing thousands of pounds by way of 4 per cent interest on your balance, while on overdrafts, banks are charging almost 12 per cent interest.
According a new data released by Moneyfacts.co.uk, more than 27 million people are banking with traditional providers namely Barclays, HSBC, Nat West/RBS and Lloyds TSB.
| Millions can benefit from changing their current account or provider, Halifax reiterated.
Moneyfacts also said that being overdrawn is now more of a reason to switch provider than not to. For instance, considering Alliance & Leicester is offering a zero per cent interest overdraft for the first year after account is opened - rising to just 7.9 per cent thereafter – which is certainly a bargain.
What’s more? new banks will perform all the duties on your part like contacting your old bank, transferring standing orders and direct debits for you, and arranging for your salary to be paid to them as well – making the whole process much simpler.
But Moneyfacts say, despite all these facilities, 51 per cent of consumers are still reluctant to change their current account provider.
The consumers can easily find current accounts that suit their needs by shopping around.
In fact banks such as Nationwide provides an account that does not charge travellers for overseas use, while Alliance & Leicester offers free worldwide travel insurance.
Apart from this, there are many account providers available today who offer close to four per cent interest rates, which in a way works ideal for people who often overdraw.
Moneyfacts points out that switching current account also works in favour of mortgage holders as it not only helps them to pay off mortgages years earlier, but also reduces overall payments by thousands of pounds.
If all this is not enough, there are some banks like Lloyds which is offering £50 to customers to open its Classic Plus current account.
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