Consider debt implications, account switchers warned

People who tend to be in debt due to having a regular bank overdraft should consider this if they want to switch their account.

Price comparison site MoneySupermarket has noted the number of switchers is currently 25 per cent more than normal, but head of banking at the portal Kevin Mountford said people should check carefully whether a switch is in their best interests.

Noting the same account may work better for some than others, he observed: "Some people are always in credit and will find that cash incentives are the best way to maximise returns, but others will need to consider various overdraft charging structures."

He also advised that people should not look to do away with a bank account altogether, despite how they may feel about some recent events, as it could cause problems like making it hard for them to get paid.

The comments come after the emergence of a scandal at Barclays over the fixing of interbank lending rates, a situation that has led to £290 million of fines and a series of resignations by senior staff, with possible criminal prosecutions to come.

Posted by Paul Thacker