Never changed your bank account? New rules will mean you can switch in just seven days with all your money protected George Osborne hails 'powerful weapon' against being stuck on bad deals 75% of people have never changed account, blaming the hassle All money will be protected and payments forwarded for 13 months Switch: Chancellor George Osborne hopes the new rules will increase competition between banks to offer better deals and services Bank customers will be able to switch accounts within seven days under new rules coming into force next week. Chancellor George Osborne said the change would be a "powerful weapon" to protect customers from being trapped on bad deals. New protections will ensure customers do not lose any money from moving to a new bank, with all direct debits and standing orders automatically switched. Three in four people say they have never changed their bank account, blaming the hassle and fear of money going astray. But by making it easier to move to competitors, banks will improve the deals and incentives they offer to win and retain new customers. The plan was a key recommendation of the Independent Commission on Banking which was tasked with trying to find ways to encourage competition. Under the new Current Account Switch Service, customers will between to switch their accounts between banks in just seven days. There will also be guarantee that they will be fully protected against any financial loss in the event a problem occurs while making the change. The Treasury warned that low levels of switching in the UK current account market was pushing up costs and leading to poorer services for consumers. One in five people who have never switched said it was because of the hassle and potential risks. Mr Osborne said: "The new 7 day switching service is central to our reforms to build a banking system that works for customers. This service was a key part of the recommendations of our Independent Commission on Banking two years ago and I'm delighted it has now become a powerful weapon for consumers. Competition: More high street banks are expected to offer incentives to persuade people to switch, and stay Anyone who loses money during the switch will be able to claim it back under the scheme. By completing the change within seven working days, more people should be persuaded to make the move. Customers will be able to choose the exact day their account switches to ensure that regular payments like mortgages can be guaranteed to be paid. There will also be a 13-month redirection service, so any debits or credits mistakenly made on the old account are automatically forwarded on. Some 33 current account brands from 17 banks and building societies are covered by the scheme. Small businesses and charities will also be able to take advantage of the switch service.