MSE News: Current account switching hits new low

JuicyJesus

Katiehound wrote: »

I honestly think that most folk just can't be bothered. When, in the past there have been loads of switching deals and I have mentioned it to various friends most answer- too much hassle for what £100- or whatever. One or two have been interested

This is exactly my experience.

I've posted this before, but from my experience working for a bank most people have a current account and maybe a savings account/ISA alongside it, and they consider their bank to be a utility along the lines of an electricity supplier. They consider the idea of moving banks just to get £100 to be the same as switching energy companies just so they can get £12 off Uswitch - absurd. Their bank works and that's all they care about, and unless they get severely p*ssed off they'll stay put because no matter how many switching bonuses or services they are it's still a pain in the !!!! and uncertainty, especially since there's no reliable way of judging how good the service at a bank is going to be unless you're with them (you can say "look at polls" but even First Direct with its 90+% satisfaction has dissatisfied customers, myself included).

The average MSEr who cares about this stuff is very odd relative to most normal people, which is why I think the regulator's continued concern about people not switching is so thoroughly misplaced, and why the repeated harping on about a "broken market" is so far off the mark. If people won't shift banks for £100 of free money for a switch delivered in just over a week basically risk free through CASS then they're not going to shift at all, no matter how many more sweeteners or inducements you throw at them. You can say these people are idiots for not wanting 5% from such and such building society or £100 from such and such bank or £5 a month cashback for your bills, but those sums seem tiny to the average person relative to what they perceive as the ballache of moving banks.

To put it another way, I have offered referral codes to Nationwide for a free £100 to four people (who aren't my partner) - three turned them down flat, one took it, don't know if they're actually going to switch now. If 75% of people in this admittedly unscientific example are willing to turn down risk-free free money I don't know what else could be done.

mt99

Agree with all of the above really. My main account does what I want, never had any problems really, has a regular saver (don't they all), has internet banking and an app, and as for customer service - well I've never had to call them, it just works.

My 'spare' account on the other hand has a couple of direct debits that I don't really care about if they go wrong, and a couple of hundred in it, and I switch it around as and when just to get a few hundred pounds here and there.

Caddyman

Believe me, I've tried to get friends to do a switch (I'm with Nationwide myself) and get them and myself a free £100, but their apathy is astounding. They've even told me that they cannot be bothered, they have all cited that 'it's too much hassle' when they've never even switched before. I can also tell you that they frequently moan about their lack of finances. You'd think they'd want to get a bit of free dosh, but the simple fact is as a few of us have already stated, they cannot be bothered.

tempus_fugit

mt99 wrote: »

I would be interested to know how many people here have switched their 'real' or 'main' current account (as opposed to spare accounts that they keep of set up specifically for switching to get the bonus etc).

I know I haven't switched my main account (the one where my 'real' direct debits go and salary is paid into) for many many years now but I have done 6 other switches to get the bonus money.

My switches have been main accounts. The first one was away from RBS, which gave me no benefits whatsoever, to the Halifax for £125. They also gave £5 reward at that time, which was attractive and we have other accounts with them so we already had the internet banking. I now have two "main" accounts and no "spare" accounts as they all serve a purpose of some sort, and as I didn't want to move the Santander one it has had to be the Halifax, which is now only giving a £3 monthly reward, so not as attractive. The £250 incentive at Clydesdale was just too good to pass up, so the Halifax one had to go. I am slightly regretful about it as I do like the Halifax internet banking and apps, they work very well, and downloading statements is nice and easy. I'm not sure what it will be like with the Clydesdale, as I have had bad experiences with them in the past, albeit more than 30 years ago now so things may be different in the modern banking era. We'll see, but the £250 will be such a boost to the finances that it's worth for a shirt time at least.

badger09

tempus_fugit wrote: »

My switches have been main accounts. The first one was away from RBS, which gave me no benefits whatsoever, to the Halifax for £125. They also gave £5 reward at that time, which was attractive and we have other accounts with them so we already had the internet banking. I now have two "main" accounts and no "spare" accounts as they all serve a purpose of some sort, and as I didn't want to move the Santander one it has had to be the Halifax, which is now only giving a £3 monthly reward, so not as attractive. The £250 incentive at Clydesdale was just too good to pass up, so the Halifax one had to go. I am slightly regretful about it as I do like the Halifax internet banking and apps, they work very well, and downloading statements is nice and easy. I'm not sure what it will be like with the Clydesdale, as I have had bad experiences with them in the past, albeit more than 30 years ago now so things may be different in the modern banking era. We'll see, but the £250 will be such a boost to the finances that it's worth for a shirt time at least.

You don't have to give up your Halifax Reward account, or any other for that matter.

You say you don't have any 'spare' accounts. The solution is to create a 'spare' account, make sure it complies with the switching terms for the bank you want to switch to (DDs etc), then switch it and retain the ones you want.

Many regular posters have done that repeatedly;)

harz99

SuiDreams wrote: »

I have either already previously completed switches to those currently offering incentives or am excluded for already having accounts. Unless new incentives come along there is no reason for me to switch again. There will always been high points and low points in switching depending on what incentives there are around........

keiran wrote: »

One reason for the lower levels of switching may be that seasoned switchers haven't been switching in recent months as no new switch offers have been available for a while (having used up all the offers going)

Agreed with both the above, with most switch incentives disbarring people who have previously received such a payment from the new bank, the frenzy was bound to die down in time.

We have only one left available to us and that will have to wait until mid 2018 as our credit rating's have been dropping this year...

eyemac24

Just a quick question on this account, I just switched using the MSE link and the switch has now been completed, painlessly, does anyone know how long it takes for TSB to transfer in the £130? just thought I'd ask the forum beofre calling them. thanks.

Consumerist

eyemac24 wrote: »

Just a quick question on this account, I just switched using the MSE link and the switch has now been completed, painlessly, does anyone know how long it takes for TSB to transfer in the £130? just thought I'd ask the forum beofre calling them. thanks.

. To qualify for the [£130] offer you must do all of the following:
a. Apply for a new Classic Plus account by 4 December 2017 through MoneySupermarket and Money Saving Expert;
b. Before starting the application, you must accept cookies in your browser. If you don’t, you won’t receive the £130 payment;
c. Complete a full switch to TSB using the Current Account Switch Service by 22 December 2017. This process takes 7
working days so you will need to start your switch before 16:00 on 14 December 2017;
d. As part of the switch, transfer all active credits and debits which must include a minimum of 2 active Direct Debits from
your old account and close it (this is called a full switch);
e. Pay at least £500 into your new TSB account within 28 days of the switch completing; and
f. Have a minimum of 2 active Direct Debits still registered on your new Classic Plus account at least 28 days after the switch completes.

It seems likely they will wait until you have paid in your first £500 within 28 days - so probably 28 days but maybe less if you pay in quickly.

ST-User

I'd switch with pleasure any time, but (un)fortunately we have already used all the available switching offers. I'm just wondering if banks like Natwest, RBS and others will come out with a nice offer.

Consumerist

ST-User wrote: »

I'd switch with pleasure any time, but (un)fortunately we have already used all the available switching offers. I'm just wondering if banks like Natwest, RBS and others will come out with a nice offer.

I'd say the switching incentives are designed to coax people away from the likes of NatWest & RBS who rely on apathy to continue offering nothing.