Childhood Choice...Bank Account for Life?

LEEDS, ENGLAND, February 08, 2012 (Press-News.org) The average person in the UK has had their main bank account for more than 20 years, according to new research from Halifax.

In figures that demonstrate the average person's reluctance to move bank account providers, the bank found that:

- 1 in 10 adults still use the account that they opened between the ages of 1 and 15 years old as their main account today
- A third of adults opened their main current account between the ages of 16-24
- Over a quarter of people (26%) have held their current main account for more than 26 years

Parent and student account define choice
Many adults admit to choosing their provider for reasons that may no longer be relevant to their circumstances.

Parents' banking choice is an influential factor, as 17% of adults are with their bank today because it's where their parents had accounts. This is more than the 11% that chose their account on the strength of offering when they were a student.

For many, the location of a branch was a determining factor in opening their account. Nearly a quarter (23%) said that they chose their provider because it was the closest bank branch to their house when they opened the account. Only 16% said that would be in a factor if they were looking to switch accounts today .

Rate more important than service for switchers
Halifax asked customers in what circumstances they would consider leaving their existing bank. Nearly a third of customers (30%) responded by saying that nothing could encourage them to switch providers. However, more were likely to move if it made them better off financially.

Just 22% of customers say that they would change providers if they were having service problems with their existing bank, and only 20% would move somewhere else in order to get better service. However, more than 37% said that they would move to get a better level of interest on their current account, and 17% would move if it meant that they had better deals on other products such as mortgages and savings.

Although 30% have said that they would consider moving to take advantage of a switching incentive, just 11% of customers hold their account today as a result of an offer.

Anthony Warrington, director of Halifax current accounts, says, "We understand why some people are reluctant to change current accounts, but moving to the right account really could make them better off. If someone's with the bank that they chose at 11 years old or simply because it was the closest branch to where they lived at the time, the likelihood is that there is an account that is more suitable for them now. It's an important decision, and it doesn't have to be hard work"

Those switching to a new Halifax current account have access to one of the most innovative product ranges available on the High Street, including the Reward Current Account and Ultimate Reward Current Account.

The Reward Current Account offers account holders a monthly GBP5 reward if they pay in GBP1000 or more each calendar month, which can equate to up to GBP60 each year. On an average monthly balance of GBP1500, this equates to a gross credit interest payment equivalent to 5%.

Customers that switch in branch to a new Halifax current account will benefit from:

- GBP100 credited to the new account on the day that they start the switching process
- All account details provided at opening with the ability to start banking online immediately
- A dedicated switching team to provide support throughout the process
- A service to transfer all direct debits and standing orders
- A service to transfer credits, including salary or pension credits

For further information please contact:

Halifax Press Team:
Nick Osbourne
Customer enquiries: 0845 739 4959.
Press enquiries: Nick Osbourne, Halifax, P O Box 548, Leeds, LS1 1WU.
nicholas.osbourne@halifax.co.uk
www.halifax.co.uk