Dump these current accounts now

We show you how to have a better relationship with your current account!

Britons stick with their current accounts longer than they do their partners, according to new research from Santander. On average, people keep the same account for 16.5 years; whilst partners get the boot after an average 14.1 years.

One in five people have had the same current account for a whopping 30 years!

The thing is, when it comes to financial products, loyalty doesn’t usually pay; thousands of us could get a better deal if we bothered to switch to a new bank account today.

Here’s a round-up of what you should be looking for in a current account - along with the top players out now.

It’s all ‘take, take, take’

Ever had a partner who doesn’t give a lot back? Sadly, plenty of current accounts are the same, with lots of charges but miniscule in-credit interest rates.

If your current account is one of them, dump it. New current accounts offer rates that beat those of the top-paying savings accounts.

For example, the Preferred In-Credit Rate account from Santander offers an in-credit interest rate of 5% APR for the first year, on the first £2,500 in the account.

Just bear in mind you’ll need to pay in at least £1,000 to get this rate; and it will drop to just 1% after twelve months, so that might be the time to switch accounts again.

Alternatively, the Reward Account from Halifax will hand you £5 each month you pay in at least £1,000.

This is an ongoing account feature (with no end-date publicised). However, it’s always worth keeping an eye on account developments, so you can act swiftly if the incentive is withdrawn.

Give me some space

No one likes a partner who tracks their every move and clamps down on every little mistake. If you need a bit of space to breathe (and go into the red every now and then) ditch your existing current account and find a current account with a decent interest-free overdraft facility.

Santander’s Preferred Overdraft Rate current account offers a 12 month, 0% overdraft facility, providing you switch your direct debits, standing orders and salary to it, and deposit at least £1,000 each month.

After a year, the account will start charging 12.9% on authorised overdrafts. And this certainly isn’t an account for people wanting to earn interest: The in-credit rate is just 0.1%.

We need to talk…

You know those partners who won’t address relationship ‘issues’? They just plough blindly on, hoping it will all go away.

Some banks seem to be like this, too. Super-duper interest rates and 0% overdrafts are all well and good - but if the quality of service is appalling, why not dump your current account for a bank that treats you better?

For example, the 1st Account from First Direct has consistently received excellent feedback from lovemoney.com readers, as well as other consumer groups.

Just be aware that you’ll need to pay in at least £1,500 every month, or you’ll be hit with a £10 monthly fee.

The little extras

The ‘little extras’ associated with current accounts are a bit like those in a relationship: The odd bunch of flowers can’t be the bedrock of a healthy partnership, but it’s definitely a welcome surprise.

When choosing a bank account, it rarely makes financial sense to go for one solely on the basis on a one-off bonus payment or other incentive.

However, find an account that meets your needs, and a handful of cash is certainly an extra benefit.

Two of the accounts I’ve already mentioned give substantial cash bonuses to those who sign up. The Preferred In-Credit Rate account from Santander and the 1st Account from First Direct both give new customers a free £100.

To get Santander’s bonus, you’ll need to use its Account Transfer Service to switch all standing orders and direct debits across to it, and pay in the necessary £1,000 per month.

Recent question on this topic

• epsh asks:

  Whats the best bank for current accounts and accessible savings accounts ? I also want online access with these.

  • 
    MikeGG1 answered "It depends on how much the savings are. If you are talking about £2,500 the answer..."
  • 
    epsh answered "I have been with Alliance & leicester, now Santander for several years. Previously with Lloyds TSB...."
  • Read more answers

With First Direct you’ll have to deposit the £1,500 every month for at least three months. And - providing you’ve kept up these monthly deposits - the bank will even give you another £100 if you choose to switch away within the first year.

Trust and loyalty

Finally, when it comes to trust and loyalty… a current account is nothing like a relationship! Your bank is out to make a profit, so you can’t trust it to act in your best interests. And you should feel no sense of loyalty just because you’ve been together a long time.

If your current account slips up, boot it out and get a new one! They’ll be plenty of others queuing up to offer you a better deal…

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