COMMENT
How Switching Has Become Fashionable

Are you among those who think that life is too short to worry about saving a few pounds here and there? According to the National Consumer Council, the vast majority of us fall into this category, mainly because we can't be bothered to make the effort.

We're getting better though. Over the last five years, the National Consumer Council has been tracking our switching behaviour for home insurance, current accounts, gas, electricity, fixed-line telephone calls and mortgages and, more recently, mobile phone calls and savings accounts.

Overall, switching levels have increased by 152% since 2000 indicating that more of us are prepared to seek out better deals. Not surprisingly, the biggest jump has occurred in the mortgage market which is usually where the largest savings are to be made, followed by gas and electricity.

The survey also shows that providers are responding better to the demands of customers and are realizing that if they don't offer a good deal, they will lose them. Sometimes, the mere threat of switching can result in a cut in a consumer's bill.

The market in which customers are most reluctant to change is banking. Only 7% of current account holders switched in 2005 compared to 6% in 2000. Similar figures apply to savings accounts. In both cases it appears to be because consumers think it is too difficult to switch and that the savings to be made are too minor to worry about.

The thing to remember is that any savings made aren't just a one-off -- they accumulate year on year so even if it seems as if you might only save a few pounds initially, think how much you'll eventually save over the long term.

The National Consumer Council says the overwhelming majority of consumers who've switched providers find it either very easy or fairly easy which clearly indicates that it doesn't take as much effort as people think.

Save money by switching: Mortgages | Banks | Savings | Energy suppliers | Phones