High street banks do not necessarily offer the best deals despite public perception.
At least this is the suggestion of Michelle Slade of Moneyfacts.co.uk, who said that there is a general belief that “bigger is better” and that major institutions offer greater security.
HSBC and Barclays Bank, for example, are popular for their current accounts, but “their overdraft rates are some of the highest on the market”, she explained.
This could mean that consumers are missing out on the best products, particularly as the majority of them appear reluctant to switch providers.
A recent poll by Morgan Stanley found that 92 per cent of people have either not changed their current account providers or have only done so once in the last decade.
According to Ms Slade, many believe it would be difficult to switch over all of their regular payments; however, she added this is not the case as banks have facilities in place to accommodate this.
By Chris Trimble