Consumers in the UK are wasting a total of around 2.9 billion a year, simply because they are not switching to better current account deals, according to research published by Alliance & Leicester Current Accounts, which examined the deals offered by its leading competitors.
The Alliance & Leicester figures show a nation of banking customers stuck with poor accounts as they persist with the poor value current accounts offered by the traditional high street banks. Nearly two thirds (59%) of banking customers have held a current account with the same bank for more than 10 years, with 42% of customers banking with one of the traditional high street banks, effectively wasting 144.58 each every year.
But one-quarter (25%) of people who've been with their bank for more than five years still say they feel loyal to their bank as they've been good to them � despite the likely fact their bank has given them little in return � and nearly a third (27%) mistakenly think that all current accounts are virtually the same, so don't really see the point in switching.
- The 144.58 per year:
This is calculated by assuming money is lost through credit interest on an average balance of 1,000, plus debit interest on an average overdraft of 500, plus the value of travel insurance - assuming that the customer (who is banking with specific competitors) remains overdrawn for 6 months, and then stays in credit for six months.
- The 2.9 billion:
This is a product of 42% of the quoted 48.2 million customers with a current account, multiplied by the 144.58 wasted each year, giving a total of 2.92 billion.
The research was carried out on behalf of Alliance & Leicester by YouGov between 17-19 May 2005 using a sample size of 2,245 UK adults.