New Government regulations should make it easier for businesses to move accounts from one bank to another, which might encourage banks to improve their services to small and medium sized enterprises (SMEs).

The new regulations require account and credit information to be transferred between banks within three working days, enabling businesses to switch bank accounts faster and with less trouble.

It has been estimated that the average SME could save £1,000 a year in bank charges if it could move its accounts easily.

The latest switching regulation supports the Government\'s previous small business directive, which came into effect in January 2003, forcing banks either to offer in-credit interest or free banking.

Chris Stamper, head of Abbey Business, says: "Last year\'s regulations have gone some way to helping small businesses get a better deal, and this new switching timetable should be a further boost.

The Department of Trade & Industry estimates that there are 3.7 million small businesses in the UK. Currently 83% of these, bank with the Big Four banks and pay charges of up to £1,000 per year, even when in credit. Detailed assumptions are available on request.