Loyalty to banks and building societies could be costing consumers nearly £3,000

Analysis by moneysupermarket.com has shown that UK consumers who remain loyal to their bank could be paying around £2,814 more over a year compared to those who shop around for the best deals.

By comparing the current best buys products from each of the main high street banks, the analysis shows that the bank which gives the most value for money for existing customers is HSBC, who beat NatWest into second place, and Nationwide into third.

However consumers using a comparison site such as moneysupermarket.com to source their financial products would save £300 a year over a HSBC customer, and interestingly use just one HSBC product.

Kevin Mountford, Head of Banking at moneysupermarket.com, said:

“Many people like to keep their finances simple, and that can mean doing all your banking with the same provider. In addition to this many people like to develop a loyalty to a particular brand, which again encourages people to find a one stop shop for their financial needs, but our research shows that the old adage of not putting all your eggs in one basket couldn’t be truer in this instance. Banks rely on this apathy among their customers so they don’t have to work very hard to make sure they provide the best deals to their own base.

“At a time when finances are tight, and things are not likely to improve in the near future due to potential tax rises, pay freezes etc, it is more important than ever to take control and make the most of every penny you have. By switching to the best deals in the market, you could potentially give yourself a large pay rise for just a few hours work, which could be used to boost your savings or pay down your debts quicker.

“There is no doubt that the internet has helped change the way many people bank and shop for financial products. Many people now feel empowered to shop around and get the best individual deal for the different products they need. It is clear that this strategy pays off, with consumers able to use the power of the web to save money – last year moneysupermarket.com saved its customers over £400 million.”