- 21
- Dec
If you have been with the same bank for some years now and haven’t been looking at what is available from rival banks, then you could be in for a big surprise. The deals that are on offer on your typical bank account are drastically different today from what they were just a few years ago. Current accounts now offer everything from interest free overdrafts, to signing up gifts and gifts for referring friends, and they will even pay interest on your current account balance at rates that will match the best savings accounts.
So why are so many people sticking with their old under performing bank accounts? Well basically they are afraid of the hassle of changing bank accounts. Some people are also afraid of how it would appear on their credit score if they change bank accounts. While it may look suspicious to some lenders if you are constantly jumping from bank to bank without a reasonable explanation, switching bank accounts is a common practice that will not have a serious negative impact on most people’s credit rating.
Switching bank accounts can also be a lot easier than you might think. While it may have been difficult in the past, switching now is quick and simple, and banks can even adopt and continue all of your standing orders and direct debits so that you do not have to go through the process of setting these up again. The only thing you really have to do is make sure that you tell people who pay money into your account that you have switched. For most people this would really only be their employer and perhaps the Inland Revenue for receiving benefits and tax credits. That is a small price to pay for the benefits that can be gained from a better bank account.
