Tweet
Thousands of unhappy customers at the so-called big four, Barclays, HSBC, Lloyds and RBS/NatWest, have already switched to the challenger banks in a bid to get a better deal.
There are plenty of new names to choose from including Tesco Bank, TSB, Virgin Money, M&S Bank, Metro Bank, Aldermore and Shawbrook.
But do these new banking entrants live up to the hype and is it really worth the effort of switching your current account, savings, credit cards, personal loans or mortgage?
Current accounts
For years the traditional high-street banks barely competed for current-account customers because so few people went to the trouble of switching banks.
Most banks offered the same basic services such as a cheque book, debit card and overdraft, and paid a meagre 0.1 per cent interest rate if your balance was in credit.
Two factors have changed that. The first is the launch of the current-account switch service, which makes it possible to swap banks and take all your direct debits and standing orders with you, in just seven working days.
Nearly 600,000 customers used the service to switch accounts in the six months after it was launched last September, according to figures from the Payments Council.
The second factor is the rise of the challenger banks, which are battling for new business by offering eye-catching interest rates and other tempting extras on their current accounts.
But watch out, there are stiff terms and conditions attached.
Tesco Bank, for example, offers 3 per cent interest on current-account balances up to £3,000, as well as Clubcard points and competitive personal loan and credit card rates, on condition that you pay in at least £750 every month.
http://www.express.co.uk/finance/per...ke-on-big-four
There are plenty of new names to choose from including Tesco Bank, TSB, Virgin Money, M&S Bank, Metro Bank, Aldermore and Shawbrook.
But do these new banking entrants live up to the hype and is it really worth the effort of switching your current account, savings, credit cards, personal loans or mortgage?
Current accounts
For years the traditional high-street banks barely competed for current-account customers because so few people went to the trouble of switching banks.
Most banks offered the same basic services such as a cheque book, debit card and overdraft, and paid a meagre 0.1 per cent interest rate if your balance was in credit.
Two factors have changed that. The first is the launch of the current-account switch service, which makes it possible to swap banks and take all your direct debits and standing orders with you, in just seven working days.
Nearly 600,000 customers used the service to switch accounts in the six months after it was launched last September, according to figures from the Payments Council.
The second factor is the rise of the challenger banks, which are battling for new business by offering eye-catching interest rates and other tempting extras on their current accounts.
But watch out, there are stiff terms and conditions attached.
Tesco Bank, for example, offers 3 per cent interest on current-account balances up to £3,000, as well as Clubcard points and competitive personal loan and credit card rates, on condition that you pay in at least £750 every month.
http://www.express.co.uk/finance/per...ke-on-big-four
Comment