Many of us carefully weigh up our options when it comes to choosing a credit card or savings account, but research from MoneySupermarket found that a staggering 75% of people have always remained faithful to the same bank when it comes to current accounts.
If you're in this category, you might be missing out on some fantastic benefits - and your hard earned cash might not be working as hard as it could be.
This is because many banks now offer appealing benefits to their current account customers alongside a variety of tempting incentives.
Cashback, in-credit interest and attractive linked savings accounts are just some of the benefits you could be missing out on. You can see what's on offer quickly and easily using MoneySupermarket's comparison service.
Many people stay with the same bank because they fear the switching process is going to be complicated and difficult, allowing their accounts to get stagnant and not making the most of their money.
Kevin Mountford, head of banking at MoneySupermarket, said: "Although generally as consumers we have become more used to switching products and providers there still seems to be a reluctance when it comes to bank accounts.
"In many respects this is understandable as most consumers adopt the 'devil they know' mentality. However, this said, I feel many could secure accounts that either work harder for them or are just better suited to their needs.
"If there are better options then don't be afraid of switching as, in this day and age, it is imperative that we get the best value from all of our financial products, including our current accounts."
Switching explained
Banks have realised that most people think switching bank account will be a time-consuming hassle.
In response, they've attempted to make the process much easier.
They now do all the leg work, with most offering a dedicated switching service to oversee the whole process.
They will present you with all the necessary paperwork, and the first form you will be required to sign is a 'switching your account' form.
This gives the bank the authority to swap your account on your behalf. They will contact your old bank and get all the details of your standing orders and direct debits, which will then be sent for you to check.
The new bank will give you a transfer date, so you will be able to keep track of your direct debits and standing orders and know when they should leave your new account.
This should prevent any potential bank charges arising from direct debits that go unpaid due to the switch-over process.
However, if this does happen, most banks will be happy to refund you. They will also present you with a form to organise payments from anyone that credits your account, such as your employer.
It really couldn't be easier - so what are you waiting for?
Choosing the best current account
Once you've decided to switch your account, the next question is - which one to go for? With so many different benefits attached, it's worth taking some time to browse your options and work out the best one for your circumstances. Visiting MoneySupermarket's current account channel will allow you to compare a number of accounts and see which one is best for you.
First Direct's 1st Account offers a great range of perks. First, you can expect to receive a generous switching incentive of £100 cashback when you open your new account.
You'll also be entitled to a £250 interest-free overdraft and, on top of that, the 1st Account comes with a satisfaction guarantee, promising an extra £100 if you switch to another bank's current account after 12 months.
However, the drawback to this account is that you'll need to pay in at least £1,500 a month. Any less than this and you have to pay a £10 monthly account fee.
If you are the type of person looking to earn interest on your in-credit balance, you might want to consider the Santander 123 current account.
This pays 1% AER/gross (variable) on balances of £1,000 or over, 2% once your balance is £2,000 or over and 3% once your balance is £3,000 or over.
The account also comes with a 0% overdraft and no overdraft fees for the first four months, and the opportunity to earn cashback. You get 1% cashback for spend on water and council tax bills, 2% cashback on gas and electricity bills, and 3% cashback on mobile, landline, broadband and paid-for TV packages.
However, the account does come with a monthly £2 fee and you must be able to credit the account with £500 a month.
It's clear to see that there are a number of competitive current accounts out there all battling for your money. So take advantage, do your research here at MoneySupermarket and find the best one for you.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
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Contact MoneySupermarket.com at Moneysupermarket House, St David's Park, Ewloe, Flintshire, CH5 3UZ. © Moneysupermarket.com Ltd 2012
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