If you have an overdraft then you may wonder whether you should switch it to somewhere else. This is something which is worth thinking about because there are advantages in doing so.

Interest Rate

An overdraft is charged for by interest and normally the interest will vary between 35% and 40%. This means that if you can find one on the cheaper side, then you can find that you will be able to save some money. If the rate is significantly lower then you will save more money. It is worth noting that the rates will always be variable and so even if you change to a cheaper one, they may not always be cheaper. Therefore, you will need to keep a close eye on them to make sure that you are always getting a good rate. This could be time consuming but worthwhile and it can be worth setting yourself a reminder to do it at intervals in time, perhaps six monthly or yearly or if your bank tells you their rates are going up, then you could take a look and see what others are charging and if you can pay less. Switching a lot can get tedious though. It is easier to switch most accounts than a current account. This is because you are likely to have direct debits and standing orders as well as your salary being paid in to a current account and therefore you will have to swap this over every time you swap over. You will therefore probably, only be prepared to make the effort to do this when you are really sure that you will be able to save money. It could also be tricky actually swapping when you do have an overdraft as it will mean that you will be transferring that overdraft to another bank and this may not be something that all banks will allow so it is worth checking this and bearing it in mind.

Customer Service

Some people do not only think about money when they are looking into a bank, but also the service that they will get as well. Many people like to use a bank that they can trust and one that they know will help them out when they need it, be open when they want to use it and things like this. It is therefore worth thinking about what your requirements might be with regards to a bank as you may need to consider this in light of the interest rate so that you can decide whether you think that it will give you good value for money. You might be happy to pay a bit extra for your interest if you know that you will be getting a better service. So, it is a good idea to think about this as well, before you rush in to switching to another bank. However, you may find that the bank that you are thinking of switching to will provide a better service for you and be cheaper or at least be the same price and provide a better service and therefore be better value for money. You will need to find out more about the bank and then you will be able to make up your mind about them. Therefore, it is a good idea to look at reviews and find out what other people think about it so that you are sure that it is a good idea to swap to the new bank. Also, take a close look at their website and that should help you to be able to find out more about them there as well.