Is a fear of change losing you money?

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Are you still using the current account you opened when you were a teenager? We show how sticking to the familiar could mean you lose out on over £100.

One in 10 adults has never switched current account, according to recent research from Halifax.

Also, the bank found that some 26% of Brits have held their main current account for more than 26 years.

Missing out

You may be happy with the account you currently have, but by switching to a new one, you could potentially find yourself better off.

Banks are constantly battling to offer the most enticing sign-up benefits to prospective customers.

These include free money, preferential rates on savings accounts and fee-free overdrafts.

What’s on offer

First Direct is currently offering £100 to those who open one of its 1^st Accounts.

The conditions for receiving the cashback are that the account holder transfers at least two direct debits or standing orders and pays in at least £1,500 per month within three months.

People who aren’t happy with the bank can then receive £100 for leaving, provided they do so between six and 12 months of opening the account.

To receive this £100, the account holder has to have paid in at least £1,500 per month for the first six months.

Another feature of this account is that it comes with an interest-free overdraft of £250.

It’s worth mentioning that arranged overdrafts of more than £250 come with an interest rate of 15.9% EAR.

What else is out there?

If First Direct’s offer doesn’t float your boat, a deal from Santander may do the trick.

With this bank, customers can receive between £100 and £300 cashback for switching to one of its current accounts.

Not only this, but they can also receive an interest rate of 5% for 12 months, on balances up to £2,500 and an interest-free arranged overdraft for 12 months.

There are strict terms and conditions when it comes to qualifying for the cashback.

In order to receive £100, customers need to pay in at least £1,000 per month and must switch at least two direct debits or standing orders over to the new account within 13 weeks of its opening.

Customers can receive £200 cashback if they do all of the above, plus already have a mortgage with Santander.

Those who have a Santander mortgage and can bring £10,000 of savings to the bank can earn a whopping £300 cashback.

Despite the perks of this account, the bank doesn’t have the best reputation for customer service and applicants may want to bear this in mind when opening an account.

More than just a joining bonus

Another account that people may want to consider is the Halifax Reward Current Account, which comes with a joining bonus of £100.

In order to qualify for this cashback, customers need to use the bank’s switching service to transfer over all of their direct debits.

On top of this, account holders can receive £5 per month, every month they pay in £1,000.

Something to bear in mind with this current account is that it doesn’t have a free overdraft. In fact, customers will be charged £1 a day for using a planned overdraft of up to £2,500 and £2 a day for using a planned overdraft of over £2,500.

Those who become overdrawn accidentally and, therefore, use an unplanned overdraft will be charged £5 for each day they remain overdrawn.

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