Loyal to your bank? You’re losing up to £260 a year by not switching your account

A whopping 37% of bank customers have had their accounts for more than 20 years

The days where loyalty to your bank paid off are long gone, it seems, as a major investigation discovered customers can save an average of £70 a year by switching to another account provider.

Those who go into their overdraft regularly could save a massive £260 a year.

The 18-month inquiry by the Competition and Markets Authority (CMA) found the UK banking market was not competitive – however it stopped short of saying banks should be broken up into smaller businesses.

Banking customers should be prompted to move their account to another bank on occasions where things have gone wrong at their current bank, it advised. Such instances included their bank closing or the customer being overcharged.

Among other recommendations, it also wanted banks to fund advertising for the Current Account Switching Service.

The CMA discovered 57% of customers had held their account for more than 10 years and 37% more than 20 years.

Challenger banks are rare in this country, and new banks starting up which are neither a branch of another financial institution nor a foreign bank entering the UK market are even rarer.

Read our interview with Bank of Dave’s Dave Fishwick who explained how hard it was to set up a new bank.

 

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