Millions of Britons are missing out on potentially hundreds, if not thousands, of pounds by remaining loyal to their bank for decades, despite a highly competitive market offering a wealth of better deals and services. While many believe all bank accounts are much the same, financial experts are urging consumers to shop around, highlighting significant disparities between providers.
A survey by Which? Money last year revealed that as many as four in 10 people have stuck with the same current account provider for over 20 years, with customers of some of the largest banks demonstrating even greater inertia. This unquestioning loyalty often stems from a misconception that there is little difference between account features and services, a notion strongly refuted by Sam Richardson, deputy editor of Which? Money.
Each year, the consumer organisation conducts an in-depth analysis of current account options, scrutinising features such as fees, overdrafts, charges, and perks, alongside customer satisfaction.
Richardson explains: "At first glance, a current account seems like the most basic banking product available, and as long as you’ve got somewhere to receive your salary and pay your bills, you may think one is much like another. However, that couldn’t be further from the truth – we found huge disparities between the best and worst performers, not just in terms of account features but customer service, too."
He advises that comparing banking offerings should be as routine as shopping around for other goods and services. "We all know we should shop around every year to see if we can get a better car insurance quote or save money on our mobile bill, but when it comes to banking, many of us stay with the same provider for years," he notes. "Whether it’s your current account or your savings, it’s well worth shopping around to see if you could be getting a better deal elsewhere – in most cases, you could be."
Peter Tyler, director of personal finance at UK Finance, which represents the UK financial services industry, affirms the dynamism of the sector: "The UK current account market is highly competitive and banks and building societies have a range of accounts available for customers to choose from." He stresses that switching accounts is far from complicated, thanks to the Current Account Switch Service (CASS), which provides a hassle-free, step-by-step guide.
CASS suggests considering factors like convenient branch locations, strong customer service reviews, cashback offers, and perks such as cinema tickets or store discounts. Crucially, lower overdraft fees and better savings interest rates are also significant considerations. The Competition and Markets Authority (CMA) regularly publishes data comparing banks’ service levels, based on independent surveys of thousands of customers across Great Britain and Northern Ireland, asking if they would recommend their bank to friends and family.
Once the right account is identified and eligibility confirmed, CASS facilitates the switch, typically completed within seven working days. All regular payments, both incoming and outgoing, are automatically transferred. Even those with an overdraft can switch, provided it is agreed with the new bank or building society. "CASS has made it a lot easier for customers to switch current accounts securely and with confidence," Tyler adds. "Around 50 firms are part of CASS, with millions of people and businesses benefitting from an easy switching service."
When evaluating bank accounts, Richardson highlights an increasing array of perks available with free accounts, including fee-free foreign spending, cashback, or tools to round up spending into high-interest savings pots. For those prioritising a physical high-street presence, Nationwide, Which?’s banking brand of the year, is suggested as a strong contender.
Digital banks are also making significant inroads, with Starling, Monzo, Chase, and first direct achieving Which? Recommended Provider status this year. Jasmine Birtles, founder of personal finance website MoneyMagpie, notes: "If you don’t mind operating your account through an app and entirely digitally, then one of the newer, digital banks could be better for you. Starling and Monzo, for example, offer quick and easy set-up, generally lower fees and very handy online budgeting tools that are beloved of younger users in particular. Those who travel abroad a lot also like them for their competitive currency exchange rates."
Birtles also points to Tallymoney accounts, where deposits are automatically invested in gold. "It comes with a Mastercard which you can use anywhere in the world, and there’s no exchange rate because you’re paying in gold. There’s a small monthly fee for the account but, given that gold rose in value by 65% in 2025, it’s hardly noticeable. Of course if and when gold goes down that fee will be felt more, but as flat currencies (pounds, dollars, euros etc) gradually devalue, gold looks more and more like the solid option for our cash."
For those considering a new account, a packaged bank account – a paid-for option offering extra services like travel insurance or breakdown cover – could be worthwhile, Richardson suggests. However, he cautions: "Just make sure the benefits are ones you’ll get your money’s worth from, and that you’re not already getting cover elsewhere. For example, some accounts may throw in perks like gadget cover that you might already have via your home insurance, or breakdown cover that you already have through your car insurance." Timing a switch correctly could also yield a cash switching bonus, as providers periodically run such promotions.
Savings accounts, much like current accounts, are often neglected. Following the Bank of England’s base rate cut to 3.75% just before Christmas, many providers have already reduced rates on instant access accounts. Despite this, Richardson assures that competitive rates are still available, stressing: "It’s well worth taking the time to shop around. Some of the best rates are often offered by digital banks, so it’s worth keeping these under consideration, even if you may not have banked with them in the past."
He advises careful scrutiny of savings terms and conditions, as some accounts offer boosted or bonus rates for a limited period, necessitating a calendar reminder to switch again when the offer ends. Richardson concludes: "Leaving money sitting in a low-interest account can cost you hundreds, if not thousands, of pounds in the long-term, so it’s well worth making a change to prevent your money from losing value in real terms."
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