Switching bank accounts - Is it worth my time?

Article Written By: Noelmellor

For those considering switching bank accounts there can often be some concern regarding what the process is going to involve. However, for those weighing up whether or not this is worth doing, there are some important things to keep in mind.

One of the most common reasons people switch is when they find they are unable to obtain certain services or facilities from their current provider. If, for example, an online bank account is one of your main priorities or you are looking to enjoy the benefits of mobile banking, you might want to do as many others have done and look elsewhere.

A study recently conducted by onepoll.com revealed that there had been a 31 per cent rise in the number of consumers across the UK switching accounts between the top four British banks during last year when compared to 2008 figures.

In addition, the research listed many of the reasons people were being driven to consider a new provider and what consumers' key requirements were when it comes to current accounts. Better customer service was a major issue for 29 per cent of those polled, while good online facilities were cited as a reason to switch by 23 per cent. Another consideration was better access to local high street branches, which proved to be a concern for 19 per cent of respondents, while other reasons mentioned included clearer charging structures.

But with all of the above providing the inspiration many will need to switch accounts, others will still harbor concerns about how difficult or long-winded it could end up being. However, changes to EU law in 2008 have now made sure that this should never be the case. Since the implementation of the revised regulations, banks must now follow a number of industry specific industry codes designed to keep changing accounts between providers as simple and efficient as possible. Providers like Lloyds TSB have even introduced their own dedicated switching teams to ensure this is the case.

Known as the European Banking Industry Committee's Common Principles for Bank Account Switching, the changes boost competition in the market, which is also good news for consumers looking to get the best deal possible. If you do decide to go ahead, the banks involved will communicate with one another on your behalf to get balances, payment details, direct debits and standing orders over to your new account with minimal fuss.

As part of these regulations, information must be passed between the two as quickly as possible and the replacement account should be fully up and running within four weeks. However, it is also recommended that you also keep an eye on the moves to ensure things are going ahead correctly.

As far as paperwork is concerned, there are still some things that you will need to sign, but again this process has been streamlined to keep it as straightforward as possible. Some banks will even allow you to switch by just completing an online form. So with all this in mind, you could soon be enjoying better rates of interest, services and much more than you might have thought by making a new bank account application today.

About the Author

Noel Mellor is highly experienced across a range of economic matters including personal banking and business banking topics.

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