Your bank account was probably opened when you were a wee nipper, wasn’t it? It was probably opened at the nearest bank branch by your parents and you took whatever “upgrades” your bank gave you when you hit 18 or so. You’ve stuck with this bank account for years, never thinking about it. Why should you? Banks are pretty much all the same, aren’t they?

No, actually. Interest rates and charges can vary quite a bit and there’s always new “special offers” to consider. Some people point out the hassles involved in switching accounts between banks as reason not to move. This is no longer true. Banks are legally bound to provide details such as direct debit information to your new bank within three working days and your new bank must have the new account open with ten working days (source).

There are many reasons why you would want to switch. Better service and better interest rates are the usual. Lower bank charges are an important one to watch for – especially when ATM cards are involved.

Savings accounts aren’t near as complicated to move about as current accounts, and it’s here you should always be looking for a better deal. Don’t worry about staying a loyal customer – pass yourself around like the floozy at the Office Christmas Party. Use a particular bank only until a better offer comes along, then jump ship as soon as possible.

The only thing to watch for is a trend towards “12-month contracts” on savings accounts. A lot of the best High Street banks are offering fantastic rates of up to 10%, but on accounts where your deposits are fixed for one year. While there’s nothing wrong with one of these accounts (I just opened one the other day infact), don’t put all your eggs in one basket. I’ve mentioned before you should aim to save a minimum of 10% of your income every month. Rather than put all this into a fixed-term account, maybe split it so 4% goes into a more flexible (but lower rate) account. This will let you react quicker when an even higher interest rate appears later.

In summary: don’t worry about being a loyal customer, it won’t get you any benefit; be prepared to switch to a better deal and always look out for number one!