Updated 22nd July 2013
Moving your existing current account to a different bank could not only net you a higher interest rate but also a cash reward.
For example, First Direct will give you £100 if you switch your current account to them. The catch is that you also have to transfer your salary/income of at least £1,000 per month within three months of opening the account – but that’s no hardship.
Crucially, the switching process need not be painful. Banks offer a service where they automatically contact your old bank and obtain details of all your Standing Orders and Direct Debits and transfer them to your new account for you.
And believe it or not if you are unhappy with their service First Direct will even give you another £100 and help you move your account elsewhere within 12 months.
In theory this is free money and there is nothing to stop you taking advantage of another similar offer from a different bank after the 12 months are up.
So review you current account and if you are unhappy with the service or the interest rate then you can always move it and get paid to do so. Perhaps the only time this might not be a good idea is if you are trying to rebuild your credit rating – see our post Money tip #74 – 16 ways to boost your credit score and increase your chances of getting credit (Part 1).