We all know that we should switch insurers, utility providers and the like every time our contract runs out. Deals change all the time and the best ones are generally reserved for new customers. However, the situation with banks is quite different and it normally seems like there is a lot less reason for switching things around.
Many people therefore stick with the same bank year after year not out of any loyalty or because the bank is particularly exceptional, but just because they don’t see a reason to switch. However, there are a few good reasons you might want to consider changing banks at least now and again.
It’s Easier Than Ever
Not so very long ago, the process of switching bank accounts and having all your direct debits and standing orders moved over for you was overhauled. The whole process was simplified and streamlined quite comprehensively, and if you haven’t changed accounts in a while you may not realise how easy it is. True, this isn’t a reason to switch in itself, but it means there is not much of a barrier to keep you from taking advantage of the other reasons on offer.
Savings accounts are probably the place where the banking market comes closest to the insurance and utility markets. A variety of different interest rates are on offer, and these can change quite significantly over the course of a year or two meaning that the title of best-paying bank gets passed around fairly regularly. True, rates are not great at the moment but if you want to make the best of what you can get then it’s worth switching every year or two.
Reward and High-interest Accounts
Banks are increasingly offering rewards to new customers who move their current accounts from other banks. These rewards may be in cash, gift vouchers or other forms and can be a welcome boost to your funds – much more than you are likely to get from interest on a current account. Other current accounts offer generous interest rates that beat savings accounts on a certain level of funds and for an initial period, usually a year. Still others combine these approaches, offering both a cash reward and a generous interest rate (though less generous than those accounts which use high interest as the chief attraction. Switching every one or two years will allow you to take full advantage of these offers, claiming rewards as often as the terms allow or maintaining high interest rates.