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Millions miss out on savings by not switching

Wednesday 10th March 2010

By Mike Jones

Millions of people are missing out on better deals due to a failure to switch providers, new research from Santander Current Accounts has revealed.

While one in four Britons have switched an insurance provider in the last 12 months, and one in five (21%) have switched a gas, electricity or water supplier, tens of millions of Britons are missing out on a better deal and improving their finances by not switching their current account.

Seven in ten (70%) of Britons, or more than 34 million people, have not switched their main current account since 2000, and worryingly, three quarters (74%) say they have no plans to review their current accounts in the near future. Switching current accounts could provide them with £125 in interest in the first year, plus a free overdraft.

Helen Bierton, Head of Current Accounts at Santander said: "In this day and age it is important to look around for the best deal, to make your money stretch as far as it can.

"One way of making your money stretch further, which many people either ignore or are not aware of, is to switch your current account. Whereas many people see how much they can save by switching their insurance for example, people don’t see the benefits of switching current account. However, by switching current accounts you can start earning a great rate of interest which can earn you up to up to £125 in the first year."

Santander also found:

* Twice as many people in Northern Ireland have switched an insurance provider compared to Londoners (35% vs 16%) in the last 12 months

* 12% of people in the South East and 11% have in London have switched savings accounts providers compared with and only one in 20 (5%) in Scotland, Northern Ireland and the North East

* 17% of people in the North West have switched Broadband provider compared with 8% in Scotland and the East Midlands.

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