Current account providers 'working hard' to tempt customers, but consumers not taking the bait
19th June 2008
Despite the credit crunch reducing consumer's disposable income, a large percentage of people are staying with their existing bank, rather than searching out the best deal.
That is according to price comparison site moneysupermarket.com, whose research has shown that only 14 per cent of consumers have switched bank accounts in the past two years.
Kevin Mountford, head of current accounts at moneysupermarket.com, said: "Our research shows that most people tend to stick with their current provider despite derisory in-credit rates and extortionate fees."
The research showed that of those customers that did change bank accounts 34 per cent did so because they were frustrated with bank fees.
Nearly three out of ten consumers switched because they wanted "a better standard of service" and 24 per cent were looking for a higher interest rate.
Mr Mountford said that: "Current account providers have been working hard to tempt consumers to change by offering ever enticing in-credit interest rates and new packaged options."
But he cautioned that it was the responsibility of the consumer to take advantage of these offers.
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