Midata could transform the current account market
Despite initiatives such as the seven-day switch guarantee, consumers are reluctant to ditch under-performing banks. Midata will make current account switching simpler and better, connecting an individual's banking patterns with the best deals. Gocompare.com will be at the forefront of developments when midata hits the market in 2015Matt Sanders, Gocompare.com
How easy is it to change current accounts?
Banks must transfer accounts seamlessly within seven days and the government hopes to cut that to five. The new bank may offer a free overdraft facility while changeover occurs and for most people the transfer goes smoothly, although it may take time for all the new cards, cheque books, Pins and online passwords to arriveSean Davies, Gocompare.com
How can we help you with current accounts today?
With the help of our partners LoveMoney you can quickly and easily compare rates on current accounts and their overdraft facilities, plus consider the additional benefits that are available with some products.
Should you click through to our comparison service, a simple-to-understand best-buy table will present details of account providers, interest rates (AER), overdraft rates, overdraft features, annual fees (if any) and any incentives to switch to a particular product.
You'll also see a representative example of the costs and interest rates associated with each account.
You can narrow down your search by looking at basic, standard or packaged bank accounts, and there's an explanation of what each of these broad categories covers.
This will cover things such as any in-credit interest, maximum overdraft fees, unauthorised overdraft fees, overdraft buffers, whether regular deposits are needed, cashback and exclusive offers and rewards.
Other typical details include methods of accessing the account, any enhanced customer services (such as free mobile apps), the type of bank card available and daily ATM withdrawal limits.
If you like the look of the account and you're happy to proceed, follow the button to apply online. The process should be quick and easy - in September 2013 the Financial Conduct Authority introduced guidelines known as the seven-day Current Account Switch Guarantee.
The scheme, which almost all UK current account providers have subscribed to, requires banks to transfer your account seamlessly in seven days. Your new bank should even take care of any direct debit details.
Find out more about the scheme (including government plans to cut the switch period to five days) and the various banking options you should consider in our current account guides, where you'll also find the answers to frequently asked questions.
Did you know...?
- 38% of UK consumers have never switched bank accounts
Overdrafts will be a key consideration for many, and you can read more about the main things to look out for on a bank account with an overdraft facility.
If, on the other hand, you have spare cash every month, a high interest-paying current account could suit you and may even outperform a dedicated savings option.
If you're interested in another sort of bank account, learn about joint, offshore, religious and business/corporate products, or try our dedicated pages on bad credit and basic options, children's, student and graduate choices, packaged accounts and cashback products.
You can also read more about ways of communicating with your bank, direct debits, bank charges, dormant accounts, offset mortgages, credit ratings and the exciting midata initiative.