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In the past, it has taken as long as 30 days to switch current account providers.

 

The move follows a report from the Independent Commission on Banking in September 2011.

 

The Commission recommended easier and faster account switching in order to promote competition between banks.

 

Mark Fiander from the Money Advice Service says that bank customers could save money by switching their current accounts to another provider.
‘It is definitely worth switching,’ he said.

 

 

‘It's not uncommon to save £500 or £600 by switching your bank. Now whether that's because you're not paying fees or charges, or equally if you're not getting interest that's sitting in your current account, it can really add up,’ he added.

People who use overdrafts regular stand to benefit the most from the changes.

Last year about two million people transferred their bank accounts. Some surveys predict that this figure could increase to more than five million now. However, others estimate that existing customer inertia will keep the number from rising.

 

The Money Advice Service, which is backed by the government, has launched a comparison tool to help people make a decision on which bank account provider is best value for money for them.

 

The Payments Council has also set up a  Current Account Switch Service to find out which banks are taking part on how they can switch.

 

 

Currently, three-quarters of current accounts are held by the ‘big four’ high-street banks and the average customer stays with a bank for 17 years.