By Kate Hughes
If I had realised just how much of a nightmare it was to switch my current account, I would never have been surprised by all those statistics that suggest we are more likely to get eaten by a shark, or killed by a falling coconut than switch our bank.
Until February, I, like every other personal finance reporter under the sun, was convinced that consumers were almost universally missing a trick by banking with the same establishment that their parents did. But I'm now three months into my own "big switch" and its an ongoing pain in the arse.
I transferred to Alliance & Leicester from NatWest, lured by their interest free overdraft facility and high savings rates. It all seemed to go swimmingly until it came to transferring direct debits. Some are coming out twice, from my old and new accounts, and some aren't coming out at all. My credit card company has recently added charges to my balance because I didn't have sufficient funds in my old account. No kidding - my salary is now paid into my new account. I notice A&L were quick on the uptake to get hold of my incoming cash.
I'm tempted to call the whole thing off, but if I turn tail and run, I can't help feeling I'll get stuck in current account version of that MC Escher drawing were there are lots of routes to absolute sanity, but the staircases never quite make it. Suddenly there is a lot to be said for going back to my local village branch of my parent's bank, curling up in the foetal position and never venturing out again.
If rival banks really want our custom, and are making the effort to entice us with attractive deals, then why on earth haven't they invested in just making the process work?
Upgrading to Smile is much easier as they do all of the work. It went very smoothly indeed, and they are a great bank to be with.
Posted by: ge | Friday, 18 April 2008 at 02:29 PM
I switched from HSBC (boo, hiss) to the Co-operative (huzzah) a few months ago and the whole process was extremely pain free. The only problem I encountered was my salary payments, but that was the fault of my payroll department rather than the banks.
Posted by: Lucy | Friday, 18 April 2008 at 03:13 PM
Well mate! leave aside D/D I am sure you would not know that A&L do not take cheques on their tills, as payments for your bills. You could do it over the phone though, just for this reason I would keep my natwest account with some cash. Also dont forget credit history, it takes 3 years to make one. So stick some money in your natwest account now.
Posted by: L Baja | Friday, 18 April 2008 at 04:27 PM
I had a similar experience when I tried to transfer from Natwest to Nationwide. I've gone back to Natwest because Nationwide made so many mistakes and when I drew their attention to them they still couldn't/wouldn't get it right.
I'm still having amazing problems with their credit card, set up full balance direct debit - twice my husband and I have sent in forms for this, once whilst in the bank and they've still not been set up - months later.
This bank has me pulling my hair out, they are abysmal.
Posted by: Penny | Friday, 18 April 2008 at 06:32 PM
Yep I had a very similar nationwide experience. Direct debits bouncing this way and that. Totally stuffed my credit rating. Only consider it if you can leave a whopping balance in both the old and new accounts for several months
Posted by: nick | Saturday, 19 April 2008 at 10:28 AM