Current account interest rates a priority

More than a quarter of people look for a higher interest rate when deciding whether they should switch their current account, according to research by MoneySuperMarket.

The price comparison website analysed search data and found that 27% of consumers prioritise in-credit interest when choosing their current account.

A fifth prefer accounts that offer cashback and 10% look for quality customer service.

Popular current account search terms include:

• interest (27%)
• cashback (20%)
• customer service (10%)
• benefits (10%)
• overdraft (8%).

Kevin Mountford, head of banking at MoneySuperMarket, said:

“As our research shows, high in-credit interest rates are the main driver for encouraging people to switch current accounts, no doubt fuelled by the fact savings rates are so low at the moment.

“If you are a saver looking for better rates, then it is important to make sure you maximise your savings pot whether in a transitional savings account, ISA or current account. Mixing your finances between a range of best paying accounts will ensure the returns are better compared to sticking with one poorly paying account.”