Switching current account could boost interest

With falling fuel and food prices, it seems the nation is confident it will be making some savings in the coming year and many are planning to review their spending habits as a result. 

That is according to research published by Lloyds Bank, which revealed that 37 per cent of consumers are now thinking about reassessing their finances. 

More than half of those questioned (53 per cent) admitted they would spend any spare cash they have once they have paid their bills. While it can be tempting to splash out on treats, it makes more sense to try and make cost savings where possible, so there is money in the pot if it is needed. 

Nearly one-third of consumers (29 per cent) said they would be looking to save money by switching energy supplier. Some 23 per cent of respondents said they would be paying off existing debt, and 22 per cent suggested they would be researching better rates on savings accounts. 

Recent research from MoneySuperMarket suggests savers are looking to current accounts to stash their cash. 

Some have rates as high as five per cent, which is encouraging 48 per cent of consumers to store all their money in their regular account. Meanwhile, 45 per cent have a cash ISA, and 43 per cent enjoy the flexibility that an instant access savings account affords. 

Another way to make money go further is to change a current account to one that provides better interest rates. While 13 per cent of people said they would be switching to a different bank, 67 per cent said that would be the motivation for doing so. 

Some 34 per cent said they were after better offers and rewards on their account, and 22 per cent were searching for improved customer service. 

For those who travel often, it may well be worth researching accounts that have insurance included, although these often come with additional charges, so it pays to check the fine print before signing up.