Banks to make account switching easier

46 million bank customers are now given an option to switch banks and save up to £600.

15:41 16 September 2013

The days when switching bank accounts is too much of a hassle and too expensive are about to end. From Monday, bank customers will be given an option, which is faster and easier, to move to another bank. Instead of waiting for full 30 days, bank switches are now possible in just 7 days. 

 

Mark Fiander from the Money Advice Service said: "It is definitely worth switching.”

 

"It's not uncommon to save £500 or £600 by switching your bank. Now whether that's because you're not paying fees or charges, or equally if you're not getting interest that's sitting in your current account, it can really add up.”

 

The move is the banks’ response to a report from the Independent Commission on Banking in September 2011, which suggests easier account switching as a way to promote competition between banks. 

 

Last year, there were about two million people who moved their accounts. Surveys now suggest that this number could easily double and reach more than five million. 

 

Craig Donaldson, the chief executive of Metro Bank, said: "To change the face of British banking, we need to make seven-day switching work.”

 

"But we also need to create more choice for people."