Most of us tend to stick to the first current account that we sign up with when we first start having our salary paid in to a bank, we seem to go with one of the big four ie; Barclays, Lloyds TSB,HSBC and the Royal Bank of Scotland (which includes NatWest).

Nowadays there are a lot of different banks in which to do your banking with higher interest and lower overdraft charges.

Before you switch you should have some idea of what you really want out of your bank because some of the new banks have no branches at all. They offer only telephone and internet banking.

 

 If you want to be able to visit a branch your choice will be slightly limited, but you,ll probably still find a better deal than the one you already have.

You cash will still be as safe with one of the smaller or newer banks as it will be with the big four.  Many of the new internet banks have very large, well known companies behind them..

 

All banks in the UK are regulated by the Financial Services Authority (FSA). If the bank was to go broke , account holders would be guaranteed to get their money back up to a maximum of  31, 700.

The one hazard you may face if you switch is that the credit rating organisatiuons tend to give  a higher score to people who have been with their bank for a long time. If ypu are resonably credit worthy ther should be no problem.

You should check that the internet bank you are considering changintg to is not an offshore bank as it won't be regulated by the FSA so you won't have the same protection.

 

 Many high street banks charge 15 to 20 per cent on authorised overdrafts but you can find rates of 5 to 8 per cent.

 

 Recently introduced rules makes switching banks easy. You can do it over the phone, on the net or by post. You will be required to give details of your address, salary and any loans you have taken out.

When you get accepted as a customer you willhave to sign a letter authorising your new bank to act on your behalf. You will then be asked when you want to start using your new account.

The new bank willcontact the old one and arrange for your direct debits to be switched and if your salary goes into your bank your employer will be given your new account details.

Your old direct debits will now become obsolete and you will be able to close your old account.

There is a Banking Code that ensures that banks have to transfer all customer information within three days and that direct debits and standing orders are passed from the old bank to the new as smoothly as possible.

If there are any mistakes made any bank charges are usually waived.

More than 95 per cent of people that were surveyed said that they were happy with the way their accounts were transferrd.