A Guide to UK current Accounts
OVER 70% of UK bank accounts are controlled by HSBC , Lloyds Banking Group (which includes Royal Bank of Scotland and NatWest) and Barclays and because of their domination in the UK banking sector they offer very poor deals for the consumer . Uncompetitive overdraft rates , low or zero percent interest rate leading to bad deals for customers and bigger profits for the already mighty banks. Over 54 million UK current accounts means big business for the dominating few and people seem very reluctant to change their provider for a better deal . Most believe it is a lot of hassle to change accounts and set up new direct debits and standing orders for their new current account . 6 out of 10 people have never changed their bank account and results from a survey by Alliance and Leicester concluded that 84% of people have no intention of doing so in the next year.
Strange really as the amount of competitive products is on the increase all the time , and the amount of help from your new provider is increasing as well , with banks setting up teams of " switching teams " to help make your transition simple . So come on people get a better deal NOW !
Switching Accounts Using the Automated Service
The switching process has been made as easy as possible by banks and is pretty simple , it is basically a case of signing a form provided by the bank where your new current account is held to give them permission to contact your old current account provider and obtain all your direct debit and standing order details. They will also ask for your employer's details so they can arrange for your wages to be paid into your new current account.
Most banks will normally automatically approve a overdraft on your current account so that all your payments are met during the switching process which will usually take 4 - 6 weeks
Things to Consider
Most people assume that all current accounts are the same or very similar , but this is untrue these days and there are some much better deals to be had according to your situation and how you run your financial affairs . Some people would find it more beneficial to have a current account with low over draft charges and some people would benefit from better interest rates on their account
For example Santander are currently offering 5% interest rate on their current account for the 1st year (31st October 2011)(terms apply) , between £100 and £300 for new or existing customer who are switching their account and 0% overdraft interest for the 1st year , but the Lloyds TSB Classic Account is offering 19.3%(31st October 2011) overdraft rate . NOT a very good deal if you usually run your current account in your overdraft .
Take a look above at the latest deals and apply online today