Time limits will be set on switching accounts

In its present form, the code helps set out how customers should be dealt with, in areas such as account opening, marketing of services, information on rate changes, banking charges, lending and confidentiality.

Under the changes, switching current accounts is to be made easier, and more information is to be given to customers about interest rate changes.

Consumer groups have broadly welcomed the changes to the code.

The main code changes include:

• Customers will be told if interest rate falls by a half-percentage point or more in relation to the Bank of England base rate in any 12 month period.
• Time limits apply if customers move their account to another bank, and charges caused by error or undue delay will be waived.
• Clearer information on charges for using credit cards overseas
• Better notification when promotional - often called introductory - credit card interest rates come to an end.
• Banks will explain to customers the main reason for credit applications being turned down.

The Consumers' Association has welcomed code aims to make switching current accounts easier.

"We are pleased to see banks are putting their money where their mouths are, and covering you in case something does go wrong," said Ashleye Sharpe, head of money at which magazine.