Andy Ikes 30/03/2023

Switching banks - what's stopping you?

Many moons ago, when I was a young lad in short trousers, my teacher marched us all down to meet the friendly folk at what was then Midland Bank. They called it a school trip and while it was no Alton Towers, we were happy to escape the confines of the classroom. The idea was to get us set up with a bank account and teach us some life skills in the process. The teacher must have been on commission.

Anyway, we all got badges and other assorted merchandise and were chuffed to bits. Fast forward 20 odd years, the branch is a vape shop, Midland Bank is HSBC and I’m stuck with the same current account. Those badges bought a lot of loyalty that day! Better the devil you know, or sommat.

A few months ago I decided it was time to change the habit of a lifetime. A high street bank was offering £200 to switch your current account to them so I thought, sod it. I popped all my details into their website and within a couple of weeks I had a new account and £200 for my troubles. All my direct debits switched over and I didn’t have to lift a finger. All I had to do was change my card details on a few apps and websites. Job’s a good un!

Often banks, like many other big, faceless corporations, rely on loyalty and apathy to keep their customers, often on some of the worst deals on the market. This is certainly something I was guilty of. Not loyalty as such, more laziness. The app worked fine and if I ever had any issues, they generally got sorted one way or another. Although the less said about the hefty charges I incurred in my naive youth, the better.

You’ll have probably heard horror stories about switching banks, with important payments being missed and wages vanishing into the ether. You needn’t worry - nowadays banks are bound by the Current Account Switch Service, which was introduced in 2013. The guarantee means banks have to switch your account within 7 days and, should anything go wrong, your new bank has to refund any charges you incur.

So, what’s stopping you? Simply search ‘bank switching offers’ and check the various banks and reputable comparison sites for the best deal out there. You’ll be quids in before you know it.

Remember, your bank is not your buddy, no matter how long you’ve been with them.