Have you ever asked yourself if you’re with the right bank? Our research shows you could be losing thousands of pounds in fees and charges, yet many can’t easily compare accounts to switch.
We’ve done some digging and looked at charges for overdrafts, using your card overseas and how much you could be losing out on in terms of interest by having a high balance for 21 current account providers.. In our worst case scenario, when using an unauthorised overdraft, we found you could lose out on £183 in fees and charges each month by having the most expensive account instead of the cheapest.
With the cost of living top of the agenda, ahead of the Autumn Statement we are calling on the Chancellor to step in and use powers he already has to force banks to release data to customers about how they use their accounts. This data could be used to develop comparison tools that would allow people to rank providers by cost based on their needs.
Data drives choice
Banks already have this data and are using it to design products and services for their benefit. But they don’t all share it with their customers in the same way. So we’re calling for banks to make this information easily accessible (and usable) in a format consistent across all providers. That way, you can see which bank account is best for you and avoid hefty fees.
Our research lays bare the huge difference in fees and charges between current accounts. With many households relying on their overdrafts to cope with the rising cost of living, we’re calling on the Chancellor to force banks to release information so consumers can make sense of the way they use their account and choose the one that is best for them.
Compare the cost current accounts
Unless banks make it simple for people to compare the cost of running a current account, the new switching guarantee alone will fail to transform switching rates or significantly increase competition in banking.
As trust in the banks is at rock bottom, putting consumers back in control should help to restore this lost confidence. It may also help to increase competition in the current account market, forcing banks to compete on cost and quality of services.