The majority of current account holders are losing money by not changing providers. According to Santander only 7 per cent of customers switched in the past 12 months. 

This is lower than those moving savings accounts, home insurance and phone contracts, according to a report by the bank, and highlights that people are potentially missing out on extra money.

Nearly 40 per cent of car insurance customers have switched provider in the last year, and 33 per cent who hold home insurance have changed, but people are still reluctant to change current accounts.

Younger generations tend to be more clued up with 11 per cent of those aged 18 – 34 changing current accounts in the past 12 months compared to just 5 per cent of those aged 55 or over.

Rod Logan of market research company Datamonitor says customers are more likely to review and switch other products and are generally unaware of the deals available to them with current accounts.

Head of Santander current accounts Gillian Almond says traditionally people have kept their current account for a long time using the ‘hassle factor’ as a reason not to change. At the same time providers have become complacent offering poor rates and few rewards.

However, some providers, including Santander and First Direct, offer cash rewards of £100 for new customers.

The Santander Zero account also pays a high interest rate of 5 per cent on the first £2,500 for the first year, and the Co-operative offers a set of rewards including free travel, breakdown and car insurance with its current account.

Meanwhile the Halifax Reward account pays a flat £5 each month you deposit £1,000 and also gives out £50 for switching to it too.

‘Having a better current account can make a significant financial difference to consumers so it’s important for them to understand that it’s worth shopping around,’ Almond adds.