Reforms to the code, which are due to come into effect in March, will mean bank charges caused by errors or delays in moving a current account to a new provider will be waived.

Customers will also be told if interest rates on saving accounts are reduced by more than 0.5%, and will then be able to withdraw money without notice or penalty.

And banks will have to give more information on credit card costs.

They will be forced to spell out the full charges for using credit cards abroad, and warn customers if a special introductory offer on their card is about to end.

However, consumer groups have criticised the code changes as reforms done on the cheap.

Better protection

The new standards have been adopted by UK banks, building societies and the Association for Payment Clearing Services.

The reforms follow an independent review of the banking code by Professor Elaine Kempson of Bristol University.

"I am encouraged that the industry is to embrace the changes I have proposed," Professor Kempson said.

She noted in particular reforms to guidelines covering account switching and interest rate changes.

Seymour Fortescue, chief executive of the Banking Code Standards Board, said: "We welcome the planned changes.

"They will provide improved protection for personal and small business customers."

'Not far enough'

But while the Consumers' Association broadly welcomed the changes, they said they wished the reforms had gone further.

The banks make a fortune by holding onto our money for an unnecessarily long period of time

Stuart Cliffe, director of the National Association of Bank and Insurance Customers (NABIC)

In particular, the association urged the banking industry to agree a standard for comparing interest rates across the credit card market.

Currently, consumers find it difficult to compare credit card rates because there are more then six different ways of calculating interest.

Stuart Cliffe, director of the National Association of Bank and Insurance Customers (NABIC) said that the reforms did not go far enough.

"They look to me like changes that won't cost the banks much money," Mr Cliffe told BBC news Online.

"What customers want is instant cheque clearing and an end to draconian charging.

"The banks make a fortune by holding onto our money for an unnecessarily long period of time," Mr Cliffe added.