Current account switching frenzy anticipated

More than four in five people would consider changing their current account provider if free banking was brought to an end, new research has revealed.

The study, carried out by price comparison site uSwitch, found that paying a monthly or annual fee for a current account would force 83 per cent of people to move banks, despite many people remaining loyal to their provider for more than 20 years.

Free banking could be ended as banks seek other money-making avenues to compensate for the millions of people currently contesting bank charges, with uSwitch estimating that £2.12 billion is waiting to be reclaimed.

Nick White, director of financial services at independent price comparison website uSwitch.com, pointed out that the UK was one of the few places in the world where current accounts remained free, but that this was unlikely to last much longer.

"The Financial Ombudsman Service has recently claimed that is was receiving 5,000 complaints a day about ‘unlawful’ bank charges," he said.

"When this is combined with the likely outcome of the OFT’s impending investigation, which is set to recommend a cap on fees, the banks’ profit margins are likely to be hit hard hard."