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Your view: will the seven day switch be a success?

Seven day switch calendar - HM Treasury

With seven day switching coming into effect on Monday, we’ve rounded up your views on the speedier switching service. Will it be the push you need to split up with your bank?

Whether you’ve chosen your bank for its location, good service or (lack of) charges, moving away from your bank can seem like a big decision.

Currently, people are more likely to split up with their partner than divorce their bank. So will the seven day switch see a shakeup in the relationship department?

Location, location, location

It’s a key word in house hunting, but it seems ‘location’ is also influencing your choice of bank. Lauren left her bank when her local branch closed down:

‘I was a loyal customer until my building society left my local town. I generally keep all products with one bank for ease now, eg current, joint, savings and ISA. With interest rates so low, ease of banking is more of a priority.’

Time is money

William wasn’t convinced that seven days is quick enough to switch banks, telling us ‘that seems a long time in this day and age’. And Alan isn’t confident the switch will be delivered to deadline:

‘This seven-day time limit sounds like another promise the banks will break. I try to have accounts in good standing with two or three banks and building societies, so as to be able to use more than one even if there’s a problem or dispute with another. This has worked over the last 40 years or so though the declining number of banks makes it more difficult to keep up three good alternatives.’

Alan’s not the only one keeping his options open, as Figgerty explains:

‘When I switched bank account from Barclays to First Direct, I did not close my Barclays account in case there were problems with direct debits or standing orders. It all went really smoothly except for my Council Tax. That was because the Council needed me to confirm the change of bank unlike all the other institutions. I only planned to keep the Barclays account open until all payments and income transferred to my First Direct account, but nine years later I still use the account for all my online transactions.’

A bit of healthy competition

Andrew told us that loyalty is an out of date concept:

‘Sensible people now spend lots of time researching and switching … or threatening to in order to get a better deal from their existing provider. It saves you cash but what a pain in the neck!’

But Wavechange thinks there’s still room for loyal service:

‘I don’t believe that loyalty is necessarily outdated. I deal with various small businesses that provide services at a good price. It makes good business sense for insurance and breakdown recovery companies to reward loyal customers who have a record of making few claims and to discourage those that have a poor record from renewing. New customers are always going to be a gamble.’

So are you ready to embrace the seven day switch? Are you confident your account and outgoings will be updated in time?

Comments
Member

Having been with the Bank that’s been consistently come out top of consumer polls for many many years, I for one don’t have any plans to job ship.

I’ve actually switched ISA provider more times in the last 2 years than I’ve swapped bank accounts in the last 20-25.years.

I really do think that they should be reducing the time to switch Cash ISAs instead. 15 days is a total rip off, and its only necessary as a result of banks constantly dropping rates at the end of a fix period. If they didn’t do that to get new customers, then so many people wouldn’t need to switch ISA provider every year.

Member

I have a discounted gym membership because I have been a member for so many years
I pay the same each month as when I joined BUT if a miss one directdebit I will have to re join as a new member I carnt see the banks compensatieing me for this

Member

I don’t think this is covered by the Direct Debit Guarantee, but if any organisation treated me in that way, they would be named and shamed in the local press. I expect that it is just a threat to make sure that people pay promptly, and they would not want to lose a loyal customer.

Member
richard says:
17 September 2013

I changed my bank years ago when I was dissatisfied with the service offered – I am still satisfied with my present bank – So why would I change?

Member
felinity says:
26 October 2013

Switched on 4/10/13 from Smile (co-op) to First Direct all went perfectly well until npower panicked. I had rung them to claim back the £183! i was in credit. I eventually got them to refund £54 after having been forced to finalise my bill by giving meter readings (not normally due for 3 months). The woman then said it would be credited to my Smile account.Said i had recently changed banks, she went into meltdown. Said i needed new dd mandate & i would miss my monthly payment & have to pay much more each month. Week later i get emails saying monthly payments gone up by a third before increases. Still trying to sort this out. Last man i spoke to said dd wouldn’t work because i had closed my bank acct with smile. Would not accept that First direct would honour all dd’s. Talk about banging your head against a wall. Eventually had to pay Sept payment via credit card to stop massive monthly increase but they still put it up £10 a month & i’m a low user. Sorry to bore on so long but this has been a nightmare to deal with. Utility companies have many untrained, incompetent staff who have the power to increase our bills often wrongly & getting money back is impossible it seems.