Find a better bank... today!

Fed up with your bank? Then find a better one!

As we explained in Five reasons to hate your bank, many of us are pretty unhappy with our bank. Indeed, research from Triodos Bank has revealed that more than 10 million bank customers can’t find a single reason to recommend their bank to someone else!

Despite this, many of us have been with the same bank for as long as we can remember. According to the research, one in ten of us are still with the bank our parents set us up with when we were kids. Meanwhile, one in five for us chose our bank due to its closeness to where we work or live, while 19% opted for a bank that had a lot of branches!

Sadly, however, these really aren’t great reasons for choosing one particular bank over another. And if you did choose your bank based on these reasons, it’ll do you no good to then complain about it.

Instead, if you’re not happy with the customer service you receive from your bank, or the interest rate on your savings account, or the fact you never seem to get rewarded for your loyalty, it’s time to do something about it and move elsewhere!

So here, I’m going to show you where to find a better bank.

Best for earning interest

Interest rates on savings accounts are pretty dire at the moment, and what with inflation having risen to 4%, savers really are getting a raw deal. In fact, basic rate tax payers must now find a savings account paying 5% if they want to beat inflation, while higher rate tax payers will need an account paying 6.67%.

Unsurprisingly, there aren’t many savings accounts on the market that do beat inflation, but even so, if you’re earning next to nothing on your savings, there’s no excuse for not looking for a better account and moving your savings elsewhere.

If you’re after an easy access savings account, the most competitive account on the market is the Post Office Online Saver which pays an interest rate of 2.90% including a 1.25% bonus for the first 12 months. You can open this account with just £1.

And don’t forget to make the most of your ISA allowance this tax year (£5,100 for cash ISAs, rising to £5,340 for the 2011-2012 tax year) because that way you won’t have to pay tax on your savings.

Right now, the most competitive easy access cash ISA is the Nationwide e-ISA paying 2.90% with a 1.15% bonus until 31 July 2012. Don’t forget that this rate is tax-free.

If you’d prefer to fix your rate and tie in for a year or more, take a look at Highest ISA rates in years for the best cash ISAs. 

Of course, you should also bear in mind that current accounts can pay competitive rates of interest too. So if you’re not earning any interest with your current bank, now could be the time to change that.

For example, the Santander Preferred In-Credit Account pays 5% interest on balances up to £2,500 – providing you pay in £1,000 a month. Note that this interest rate is only paid for the first year – after that, the rate drops to 1%. However, if you’re going to apply for this account, I’d suggest you do it soon as Santander will be re-vamping its current accounts in the next few weeks.

Alternatively, the Halifax Reward Current Account pays £5 every time you pay £1,000 into the account – whether you’re in credit or overdrawn.

Best for overdrafts

With more and more lenders starting to charge monthly fees for their overdrafts, I wouldn’t blame you for being pretty unhappy with your bank. After all, using your overdraft regularly can work out to be very expensive indeed.

However, don’t put up with it. Instead, move over to an interest-free overdraft.

The Santander Preferred Overdraft Rate Account, for example, offers 0% interest on your overdraft for 12 months. You’ll need to pay £1,000 into the account each month to qualify and Santander says it will match your previous overdraft up to £5,000, depending on your circumstances. 

Again, however, make sure you apply for this account as soon as possible before Santander withdraws it in March. You can find out more in Santander to penalise disloyal customers.

It’s also worth noting that Santander is not renowned for good customer service, so if this is your priority you might want to look elsewhere - which leads me onto the next point...

Best for customer service

If you’re fed up with the way your bank treats you, it’s time to find a better bank. First Direct is renowned for its excellent customer service and if you switch over to its 1st Account you’ll be rewarded with £100. Just bear in mind you will need to pay in £1,500 a month or take out another First Direct financial product.

What’s more, this current account comes with a £250 interest-free overdraft. And if you’re not happy with the account within 12 months, you’ll also be given £100 to leave!

Best for rewarding loyalty

Banks aren’t generally known for their generosity towards loyal customers. However, a few of them go against the grain and will reward you.

For example, if you have the Halifax Reward Current Account I mentioned earlier, and you apply for the Web Saver Extra, you’ll be given an extra 0.20% interest, taking the total interest rate to 2.70%. This isn’t the top paying easy access savings account, but it is still competitive.

Similarly, you’ll also be able to apply for the ISA Direct Reward and again earn an extra 0.20% interest, taking the total to 3% - beating the top paying ISA from Nationwide that I mentioned earlier.

In addition to this, you’ll also qualify for the Halifax Purchases Credit Card offering 12 months interest-free on purchases and nine months interest-free on balance transfers, as well as the Rewards Clarity Card offering a £5 cashback reward every month you spend £300 or more and no fees to use the card anywhere in the world. 

You can find out more about this in The bank that most rewards loyalty.

So if you’re unhappy with your bank, now’s the time to find a better one!

More: Find a super savings account | The seven sneakiest secret financial tricks | Base rate set to rise by May