Staying with the same bank account for years, whether out of laziness or loyalty, could be costing you more than £200.
That’s because banks offer incentives for customers to switch and the largest bonuses are about £220.
Plus, moving to another bank could help you secure a better interest rate which gives a greater return on your money.
Research from Hargreaves Lansdown suggests about two thirds of Britons stay with the same bank for more than a decade.
A survey of 3,000 adults found just 34 per cent actually moved their money in last year.
But the investment company said savers are missing out on about £12bn of interest every year, according to analysis by the Financial Conduct Authority (FCA).
What you need to know about switching banks
Banks including Nationwide, HSBC, Natwest and Barclays are offering between £175 and £220 for switching your money.
Most deals are dependent on conditions such as moving a certain amount of money into the new account by a certain date and setting up a minimum amount of direct debits to leave the account.
Simon Belsham, Hargreaves Lansdown’s chief client officer said: “Millions leave their cash with the same bank by default and that inertia is worth a fortune to banks, while costing British savers billions of pounds a year.
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“Savers clearly care about rates: when they move their money, the overwhelming reason is to secure a better return.
“What holds them back is the effort of repeatedly finding, opening and juggling different accounts.”
According to Hargreaves Lansdown survey 18 per cent of people said they would seriously consider switching for an extra £100 a year or less, while 12 per cent would not move regardless of the additional return.
How much more interest could you earn?
It’s not just the bonus money available from the switch, savers could be missing out on higher interest rates.
Many savers are only earning 1.5 per cent interest on their savings, particularly in long-standing easy-access accounts with major banks.
Someone with £10,000 in a one per cent account would earn just £100 in interest over a year. But at 3.82 per cent, that would rise to £382.
There are accounts that pay just 0.9 per cent interest. On £20,000, that would generate £180 interest over a year, compared with £800 at a 4 per cent rate.
According to the Hargreaves Lansdown survey among those who moved their savings last year 87 per cent did so for a better rate.
FCA data also shows that more than 15 million Britons hold over £10,000 in cash, equivalent to around £930 billion in savings, on Hargreaves Lansdown analysis.
With only a third moving their savings in the past year, Hargreaves Lansdown estimates that inactivity could be leaving around £12 billion a year in interest on the table.
