Understanding your finances even at a simple level is something that is already difficult enough for most people. When it comes to current accounts things can start to get a whole lot more confusing. What you don’t know is that the current account that you might have may not be offering you the best rate or deal possible. In fact, a very small number have people have ever switched their current account. According to research that has been conducted by Alliance & Leicester, 6 out of 10 adults have never switched their current account and 84% have no plan to do so within the next 12 months.
Did you also know that the four big banks, Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland control more than 70% of the current accounts? These banks definitely do not offer the best rates around so from a logical standpoint it really doesn’t make any sense why people are stilling using them and haven’t made any sort of switch yet. A lot of people believe that switching a current account is a very difficult process but in reality that is not actually the case.
These days, most banks have a dedicated switching service where all of the hard work will be taken care of for you. All you have to do is decide which bank you would like to open an account with. After that you will simply need to provide them with your existing bank details and two forms of identification – one with a photograph and the other with proof of address. You will also need to sign a switching mandate which will go to your new provider and will give permission to contact your existing bank for all of the other information that will be required for the switch.
After your existing bank has provided that information you will be sent a letter that will include a list of all direct debits and standing orders confirming that you want them transferred over to the new account. You may also be asked for your employer’s details so that your salary can be paid to your new account instead of the old one.
So as you can see, switching current accounts is a very simple process and all you need to do is provide a few pieces of information. All of the other behind the scenes work is taken care of by the banks while you sit back and relax.