Is it time to switch your bank account?
Published 24 April 2012 by Lucy Bower
A survey suggests that many people don't bother switching current accounts, so we look at the milestones in your life when it might be a good time to consider switching.
Switching your bank account is easier today than it has ever been, but a lot of people still don't do it. A survey by Opinion Matters on behalf of Nationwide BS last year indicated that more than 40% of people have never changed their current account. Almost as many people (39%) haven't switched during the last five years.
So it seems the majority of people are reluctant to switch their current account to a new provider, but are they missing a trick?
Your finances change throughout your life, so how likely is it that the same bank account would be suitable for you for the whole of your life?
Think about milestones in your life - starting your first job, buying your first car, renting, or buying your first home, travelling overseas - and it's clear that at different points in your life you might need different things from your bank account, whether that's an overdraft, a debit card you can use overseas, or some help with budgeting.
Let's look at those milestones. When you start your first job, a current account that allows you easy access to your cash is going to be useful, but you might consider setting up a savings account or ISA for things you want to achieve later on - like travelling, buying your first car or even buying a house.
There might be times when cash is tight, your circumstances change, or you fall into debt. There are bank accounts that can help you through these periods - designed to help you live without borrowing, they're available without credit checks if yours has taken a hit. These are basic bank accounts.
There's still a perception that switching bank accounts is a big hassle. It's true that it could involve a few phone calls, but these days banks have whole departments dedicated to the switching process and making sure the transition is as straightforward as it can be.
If there is a bank account out there that's more suitable for you and your situation right now, why miss out?
Why not have a look and see whether switching to the thinkmoney Managed Current Account could be beneficial to you, with our built-in money management system and two-account approach.