The range of banking services is getting increasingly competitive as millions of account holders look to switch their current account.
According to the financial services comparison website MoneyExpert, up to 2.9 million people are considering changing their current account in the next 12 months.
Consumers looking to change their banking services are being attracted by the increasing interest rates paid on credit balances by a number of high street banks.
The latest bank to join the competition is Nationwide Building Society and its offer of up to 4.25 per cent interest rate paid on credit balances.
This follows Coventry Building Society's offer of 5.1 per cent and Alliance and Leicester's five per cent rate.
Research suggests that customers are also keen to switch accounts after continually being charged penalty fees when using their current range of financial services.
Sean Gardner from MoneyExpert said that previously banking chains would rely on the fact that most customers would stick with the same bank for their current account as they wouldn't want to deal with the hassle of switching.
However, Mr Gardner predicts that this could soon change within the banking industry.
"However this could be the year that customers finally start to wake up to the benefits of changing account and realise that a bank account doesn't have to be for life," he said.
"Banks and building societies are keen to win new customers and are making it worth your while switching so customers should respond," he concluded.
Banking services market gets even more competitive, suggests new research
Financial Services > e-banking > Banking news
Banking services market gets even more competitive, suggests new research
Tue, 04 Apr 2006
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