But most over 55s barely consider changing banks at all

New research suggests that of those who have a mortgage and switched banks, 41% did so to get a better mortgage rate or a customer-only deal, 30% to receive an incentive related to their mortgage and 28% to access higher interest rates on their deposit.

The results come from a survey of 2,000 UK adults who have moved home, either renting or buying, within the last two years conducted by the Current Account Switch Service.

It found that more than half of consumers (53%) spend five hours on average researching different parts of their move, including around half who researched local property prices (50%), energy suppliers (48%) and broadband providers (48%).

However, it found that bank account switching is a relatively low priority, with only 22% looking into current accounts or banking options, despite some bank switchers saying that reasons for switching included access to higher interest rates and better budgeting tools.

Younger home movers were much more likely to review their banking arrangements during a move. Half of those aged 18 to 24 (50%) and 25 to 34 (51%) reviewed or considered switching their current account, compared with just 30% of those aged 45 to 54 and fewer than one in five over-55s (19%).

Younger movers were also more likely to switch as a result, with more than one in five 18 to 24-year-olds (22%) doing so – more than two and a half times the proportion of over-55s who did so (8%).

Among older customers, more than two-thirds (67%) of over-55s said they would not normally consider reviewing their bank account at all during a move, compared with 25% of 18 to 24-year-olds.

Other bank account perks

Apart from better rates, others switched for additional perks (41%), to secure improved budgeting tools or money management (29%), and to simplify their finances by consolidating accounts (29%).

John Dentry, product manager at Pay.UK, owner and operator of the Current Account Switch Service, said: “Moving home is one of life’s more stressful milestones, and at a time when every pound counts, consumers need to be unlocking all the help they can get.

“With rates well above the low figures of a few years ago, taking time to compare current account options alongside mortgage arrangements can make a real difference, as could extra interest on your deposit, improved financial planning tools and tailored mortgage advice.”