Consumers reluctant to switch current accounts

Consumers who are reluctant to switch current accounts for a better deal lose an average of £144.58 a year in potential savings, according to figures published by Alliance & Leicester.

The reason most often cited by customers is the expected hassle such a move would bring.

However, in light of the potential savings in current accounts, Alliance & Leicester current accounts manager Simon Ripton states: ìMost banking customers are not getting the best deal available. There has never been a better time to switch.”

Online bank Cahoot recently criticised the hybrid Egg account, a new high profile arrival on the current account market, saying that it still did not offer an alternative to a current account and that it was too complex.

ìPeople cannot set up direct debits on the Egg Money account so they still have to run their existing current account as well.

ìIn effect they will end up with two extra things to manage, namely Eggís spending account and borrowing facility,” said Cahoot managing director John Goddard.

Research cited by Egg points to the fact that almost a third of bank customers are incurring charges for exceeding their overdraft limit due to bad money management.

A recent survey by Portman Building Society further highlights the problems of consumers with its indications that the debt-ridden older and younger generations are placing a financial burden on the middle generation.

© Adfero Ltd

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