Nearly 2.5 million adults in the UK have switched to offset banking so far, reveals research by ICM for Intelligent Finance.
A further 10 million UK banking customers who don't currently use it say they would consider a switch to a bank that offers offset in 2003.
Grenville Turner, chief executive of Intelligent Finance, says: “In a climate where returns on savings in traditional accounts are low, the burden of taxation is rising and the stock market is in a prolonged slump, offset banking gives people the opportunity to make their money work far harder for them. It's small wonder that offset banking is quickly catching on.”
Homeowners, 18-34 year olds and people in social classes A, B and C are most likely to move. Some one in three of each of these groups said they would consider changing their bank to take advantage of the benefits of offset banking.
The offset banking concept has caught on more quickly amongst men than women, with men being twice as likely to take advantages of the benefits of offset banking.
Some one in four consumers are now aware of offset banking, an increase of over 50% in the last year alone. ABC1s are significantly more likely to be aware of offset banking than the population at large with nearly one in three saying they were aware of the principle underpinning offset banking.
Intelligent Finance offers consumers the ability to offset the money they hold with the bank across all their borrowings without the need to have a mortgage with them.