Cash incentives, promotional offers, and mobile and online banking are some of the main reasons people switch, according to CASS.
However, there may be some circumstances where switching isn’t the smartest move. Here, Which? explains six reasons why it might not be worth moving bank.
1. It has no mobile banking or physical branches
Four in 10 said online or mobile banking was the top reason for switching last quarter, according to CASS. If mobile and online banking are important to you, it’s worth checking out what the provider offers first.
Alternatively, if physical branches are more important to you then a challenger or digital bank won't be appropriate. One in five switchers said that the reason they were moving banks was due to the location of branches.
We’ve seen physical branches close at a rapid pace since we began to track closures in 2015, and 223 are already earmarked due to close in 2024.
Find out more:2. You need to apply for a mortgage soon
Ideally, you should spread credit applications out, so if you're applying for a mortgage or car finance it may be best to wait until you've secured this before switching bank accounts.
It’s also worth downloading the statements you need from your current bank account as they may be difficult to access once you have switched banks, and a lender may need them in the future.
Find out more: .3. You have overdraft debt
If the new account offers an overdraft, that you're eligible for, your existing overdraft debt will be sent from your old bank and you’ll owe the overdraft balance on the new account instead.
If the new provider won't let you move your existing overdraft across, you can still switch, but you will need to discuss a way of paying off your overdraft with your old bank.
Find out more: .4. You're switching for the cash alone
Currently, there aren't any switching deals that offer a cash bonus. But at the beginning of the year The Co-operative Bank, First Direct and TSB had offers worth up to £175.
We don't recommend switching just because a bank is offering short-term perks – we think you should consider things that will impact your experience long term such as the fees and customer service.
If you are tempted by the cash, you could keep your main account for everyday banking and open a new account just for switching. You’ll just have to keep on top of jumping through the hoops required to meet the switching criteria to qualify for the bonus. For example, many providers say you must deposit a minimum amount into the account every month and have a set number of active direct debits.
Find out more: . We've surveyed thousands of banking customers so you can find out how providers stack up before you switch.5. You've previously switched to the provider
If you’ve held an account with a provider in the past, you’ll still be able to switch, but it might stop you from benefitting from any new switching deals.
As part of the switching T&Cs, most providers say that you can’t have received an incentive from them in the past two years or so.
For example, the two most recent switching deals from The Co-operative Bank and TSB stated that you must not receive an incentive from them since October 2022 and November 2022, respectively.
6. You have to pay for perks you won't use
If you’re switching to a new bank account with fees, make sure any premium perks that come with the account are worth it.
Some packaged bank accounts have fees as high as £21 a month, which could be a waste of money if you won't be taking advantage of the full perks, including travel insurance and lifestyle subscriptions.
To find out if it’s worth it, read our guide to the.When should you switch your current account?
If you're fed up with your current account provider and are keen to find a better service with better perks, then you should consider switching.
You’ll also be protected by the Current Account Switch Guarantee if you run into any problems.
Find out more: .source https://www.which.co.uk/news/article/6-reasons-not-to-switch-your-bank-account-aN5RM8N4GbYl