Some 2.9 million people are considering switching their current account over the next 12 months, new research has found.

The research, carried out for Defaqto and MoneyExpert.com, showed that people were considering switching in search of higher interest rates. Several providers have upped rates recently – Nationwide Building Society now pays interest rates on credit balances of 4.25%, while Coventry Building Society pays 5.1% and Alliance & Leicester pays 5% – showing the offers available to consumers.

The research also found that four million people paid penalty fees on their current accounts in 2005 and Defaqto and MoneyExpert.com believe the that these charges is one of the reasons why so many are planning to move.

Sean Gardner, chief executive at MoneyExpert.com, said: “Industry experts have long argued that current account customers are unwilling to move banks as they believe the switch will be too much hassle.

“However this could be the year that customers finally start to wake up to the benefits of changing account and realise that a bank account doesn’t have to be for life.”