Current accounts could soon be ranked using a traffic light system

Tesco Bank has called for the introduction of a traffic-light labelling scheme, similar to that used in food labelling

Simon Read
Personal Finance Editor
Friday 02 October 2015 09:50 EDT
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Traffic light
Traffic light (DOMINIQUE FAGET/AFP/GettyImages)

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Would traffic-light labelling help you find a better bank account? It’s one of the proposals that’s been put to the Competition and Markets Authority ahead of the provisional conclusions of its review of the current account market expected to be published later this month.

Tesco Bank has called for the introduction of a traffic-light labelling scheme, similar to that used in food labelling. It reckons it would make it easier for consumers to see at-a-glance the value of the account they currently have, and then be able to compare that to the other accounts available on the market.

Benny Higgins, Tesco Bank’s chief, said: “Banks have lost the trust of their customers and it is about time that the industry took concrete steps to restore faith in the sector.”

Andrew Hagger, personal finance researcher, Moneycomms, said: “The wide variation in tariffs for overdrafts and credit interest means comparing bank accounts is too complex and a key reason why people don’t feel confident to switch provider.”

He reckons traffic light indicators or colour-coded labelling offers something that’s not currently available and would be a straightforward, at-a-glance view, allowing bank customers to quickly identify accounts likely to be most suited to their day-to-day banking needs.

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