Many Britons 'neglect to compare bank accounts'

01 September 2010 10:13:52

Britons typically keep the same bank account for years.

Britons are regularly reminded of the need to shop around for financial products such as personal loans and credit cards. However, new research by Santander suggests that, despite the importance of having a good current account, many Britons fail to compare bank accounts and remain with their existing provider for years.

Lengthy relationships

New research by Santander Current Accounts suggests that Britons tend to have enduring relationships, at least when it comes to their bank accounts. A survey of more than 2,000 adults, commissioned by Santander and carried out by Opinium Research, found that the average length of time that people had held the same current account was 16.5 years, whereas the length of their longest relationship was just 14.1 years. The survey also revealed that 57% of respondents had kept the same current account for more than 10 years, while one in five had not switched accounts for more than three decades.

Helen Bierton, head of Santander Current Accounts, alluded to the fact that many consumers simply find it easier to remain with the same provider. She explained: "For many people, enjoying a successful long-term relationship in whatever form is more rewarding than chopping and changing."

Loyal customers may miss out

However, customers who hold on to the same bank account and do not look at the rest of the market may miss out on better customer service or more impressive rates elsewhere. The Santander research suggests that a minority of Britons have realised the benefits of switching financial products. For instance, a small percentage of respondents (7%) indicated that they look for the best bank accounts on a regular basis and had moved their account at least three times in the past 10 years.

According to Ms Bierton, these 'serial switchers' are motivated by a range of reasons. Some compare bank accounts to see if there are any rewards or better rates on offer, while convenience and trust are also common priorities.

Switching is 'simple and rewarding'

Ms Bierton also emphasised the ease with which bank account customers can now switch providers. She observed: "When it comes to current accounts, people often stay with the same provider, even though it might not be the most competitive, because the prospect of switching to a new current account can be daunting. In reality, it can actually be a very simple and rewarding task."

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