Zurich's flying pigs grounded

PIGS might fly before customers get the kind of service promised by Zurich Bank again, as the online bank announces it is shutting up shop to new customers.

The move to axe Zurich Bank follows its high-profile £90m launch just eight months ago and an attention grabbing TV advertising campaign. The ads featured flying pigs, apparently representing the reality of a bank that treated customers as fairly as Zurich had promised.

In less than a year the bank had managed to lure 70,000 customers - many disgruntled Big Four account holders - by pledging excellent service as well as interest rates that permanently tracked base rate.

The service for existing customers will continue until spring next year, after which time they will be encouraged to switch to one of Zurich Bank partner HBOS‘s banks - Intelligent Finance or Halifax.

Zurich Bank said: 'We are all very disappointed about closing to new business.'

The announcement follows the decision by Zurich Bank parent Zurich Financial Services to re-focus itself as an insurance-based financial services provider.

What should Zurich customers do now?

There is no rush to switch accounts yet and don‘t feel you must switch to either Halifax or Intelligent Finance accounts. Take the opportunity to select the best of what‘s on offer in the rest of the market.

Zurich Bank is not providing a helpline, but has emailed account holders with the first details of the shutdown and will be supplying more information at the end of the month.

Customers can expect some compensation for the inconvenience of having to switch banks. The bank says it will make a one-off payment to customers. This will be the equivalent of 5% of net cleared balances at midnight September 4 with a minimum payment of £200.