Current account switching takes off
Over a million customers plan to switch banks over the next six months according to research by comparison website MoneyExpert.com.
A combination of increased competition in the current account market and customer anger over penalty charges is prompting more people to move bank.
The Financial Ombudsman Service is currently receiving more than 1,000 enquiries a day about bank charges and has sent 3,500 letters to banks in the past six months on behalf of consumers.
Sean Gardner, chief executive of MoneyExpert.com, said: “It used to be you were more likely to get divorced than to change banks but increasingly that is not the case.
“Customers have got the message that it is relatively straightforward to move bank and that there are a range of good value deals out there.
“However, customers need to think before moving. If you are regularly overdrawn then you need an account which charges a lower rate for overdrafts while if you are always in credit you should opt for an account which pays you interest.”