- 27
- Jun
Several Britons remain with bad bank accounts because they feel that the hassle of moving all their direct debits and standing orders is not worth moving to a better account.
A study done by Abbey found that sixty-five percent of Britons think that switching bank accounts would be difficult because of direct debits and standing orders. However, switching bank accounts has become easier for customers as banks are required to give details of all standing orders and direct debits to a new current account provider under the Banking Code. This simply means that customers only have to scour the bank market to find the best current account offers and have the account switched over, as the new bank will do all the work for you.
Many people continue to perceive account switching as a complicated task that is ridden with potential pitfalls. However, it is extremely easy to switch accounts as direct debits and standing orders can automatically be transferred from one bank to another.
Switching accounts due to the hassle of direct debits and standing orders was not the only concern from customers about switching, others felt that there was no point in changing as all banks are similar, or they felt that their bank would not help them switch.
Many customers who have taken out personal loans with their bank wrongly believed that this tied them to their existing bank. However, loans and other finance agreements can be held with banks where the consumer does not hold an account.
Some customers questioned felt that they would lose their personal banking contacts or lose their monthly benefits. These fears are unfounded, and it has been claimed that ninety percent of those who moved banks stated that it was a fairly easy to switch. Banks frequently offer better initial benefits to new customers to entice new business.
