Is it actually worth changing your bank?

Although millions of people stick with the same bank for many years, that loyalty often goes unrewarded.

A Which? Money survey last year found as many as four in 10 people had stayed loyal to the same current account provider for over 20 years, with customers of some of the biggest banks even more likely to have stayed put.

But while such unquestioning loyalty may be because customers think there’s not much difference between account features and bank services, that’s just not the case, stresses Sam Richardson, deputy editor of Which? Money.

Every year the consumer organisation does an in-depth analysis of the different current account options on the market, analysing product features like fees, overdrafts, charges and perks, and asking account holders how satisfied they are with their banks’ service, and Richardson says: “At first glance, a current account seems like the most basic banking product available, and as long as you’ve got somewhere to receive your salary and pay your bills, you may think one is much like another.

“However, that couldn’t be further from the truth – we found huge disparities between the best and worst performers, not just in terms of account features but customer service, too.”

So, just like you’d do with other goods and services, the solution is to compare your bank’s offerings with other providers, he advises.

“We all know we should shop around every year to see if we can get a better car insurance quote or save money on our mobile bill, but when it comes to banking, many of us stay with the same provider for years,” he says.

“Whether it’s your current account or your savings, it’s well worth shopping around to see if you could be getting a better deal elsewhere – in most cases, you could be.”

And Peter Tyler, director of personal finance at UK Finance, which represents the UK financial services industry, says: “The UK current account market is highly competitive and banks and building societies have a range of accounts available for customers to choose from.”

Tyler points out that, far from changing bank accounts being a complicated process, the Current Account Switch Service (CASS) makes it hassle-free.

CASS provides a step-by-step guide on how to switch, suggesting people might want to switch to a bank or building society that has branches nearby with more convenient opening hours, good customer service reviews, cashback and perks like cinema tickets and money off at stores.

Other important considerations when you’re thinking of switching are, of course, lower overdraft fees, and better savings interest rates.

CASS points out that the Competition and Markets Authority (CMA) regularly publishes data comparing banks’ service levels. The independent surveys poll 1,000 customers from Great Britain’s 16 largest account providers and 500 customers from Northern Ireland’s 11 top providers, asking if they’d recommend their bank to friends and family.

After finding the right account and checking you can switch, CASS says you can request the switch, allowing seven working days for it to be completed. All your regular payments in and out will be transferred automatically to your new account, and CASS says you can switch even if you have an overdraft, although this needs to be agreed with your new bank or building society.

“CASS has made it a lot easier for customers to switch current accounts securely and with confidence,” says Tyler. “Around 50 firms are part of CASS, with millions of people and businesses benefitting from an easy switching service.”

What features should you look for in a bank account?

Richardson says there are an increasing range of perks available among free accounts, with some of the best offering benefits like fee-free foreign spending, cash-back, or tools to round-up spending and add it to a high-interest savings pot.

“If you’re looking for a provider with a physical presence on the high-street, Nationwide, our banking brand of the year, may be your best bet,” he says.

Digital banks

Richardson points out that some of the best accounts this year are offered by digital banks like Starling, Monzo, Chase and first direct, all of which achieved Which? Recommended Provider status.

And Jasmine Birtles, founder of personal finance website MoneyMagpie, says: “If you don’t mind operating your account through an app and entirely digitally, then one of the newer, digital banks could be better for you.

“Starling and Monzo, for example, offer quick and easy set-up, generally lower fees and very handy online budgeting tools that are beloved of younger users in particular. Those who travel abroad a lot also like them for their competitive currency exchange rates.”

Birtles also suggests looking at Tallymoney accounts, where all the money you deposit is automatically invested in gold.

She says: “It comes with a Mastercard which you can use anywhere in the world, and there’s no exchange rate because you’re paying in gold. There’s a small monthly fee for the account but, given that gold rose in value by 65% in 2025, it’s hardly noticeable.

“Of course if and when gold goes down that fee will be felt more, but as flat currencies (pounds, dollars, euros etc) gradually devalue, gold looks more and more like the solid option for our cash.”

Paid-for accounts

If you’re looking for a new account, a packaged bank account – a paid-for account offering extra services like travel insurance or breakdown cover – could be worth considering, suggests Richardson.

“Just make sure the benefits are ones you’ll get your money’s worth from, and that you’re not already getting cover elsewhere,” he advises. “For example, some accounts may throw in perks like gadget cover that you might already have via your home insurance, or breakdown cover that you already have through your car insurance.”

He says if you time it right, you could benefit from a cash switching bonus, as providers run such promotions periodically through the year.

Savings accounts

Like current accounts, savings accounts can also easily be neglected. Just before Christmas, the Bank of England cut the base rate to 3.75%, and Richardson says in response to the cut, many savings providers have already slashed the rates they offer for their instant access accounts.

He says competitive rates are still available though, and stresses: “It’s well worth taking the time to shop around.

“Some of the best rates are often offered by digital banks, so it’s worth keeping these under consideration, even if you may not have banked with them in the past.”

He warns that it’s important to always check the savings terms and conditions carefully as, for example, some accounts offer a boosted or bonus rate for a set period, so you can make a note in your calendar to switch again when the rate ends.

He adds: “Leaving money sitting in a low-interest account can cost you hundreds, if not thousands, of pounds in the long-term, so it’s well worth making a change to prevent your money from losing value in real terms.”