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Boom in current account switching

Boom in current account switching
Emma Lunn
Written By:
Posted:
31/10/2024
Updated:
31/10/2024

The Current Account Switch Service (CASS) has now surpassed 11 million switches since its launch in 2013, with 247,729 switches taking place between July and September 2024 alone.

The busiest month during the quarter was July, which saw 107,148 switches, according to the CASS’ Q3 2024 figures.

The CASS has facilitated 1,315,087 switches in the past 12 months. During this period, the service has also expanded its offering, with consumers now able to choose between 54 different banks and building societies, up from 51 in September 2023.

End-user data, which is three months in arrears, shows that from April to June 2024, Santander had the highest net switching gains with 58,070 over the period, followed by Nationwide (22,894), NatWest (5,080) and Danske (2,989).

Online or mobile banking (45%) was the top reason people preferred their new account, followed by interest earned (37%). Customer service was the third-most important reason, rising to 34%, up from 29% in Q2 2024.

A similar rise was seen for the fourth-most important reason – location of branches – which was cited by 27% of respondents, up from 24% in Q2 2024.

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John Dentry, product owner at Pay.UK, which runs the CASS, said: “The service sits in the centre of an increasingly competitive and dynamic banking market. Banks and building societies are actively developing, and announcing, new innovative incentives, often packaging multiple offers together to sweeten the deal. We are also seeing a stream of new products and perks to help entice consumers, and with this backdrop, consumers should keep their eye on their provider and the wider market to ensure they’re with the bank that best suits their needs.

“Quick, hassle-free switching plays a crucial role in ensuring that customers can easily find a current account that works best for their individual needs. Whether for personal banking or small businesses, the ability to switch accounts in a seamless, free, and efficient way is vital.”

The best switching incentives

If you’re looking to switch current accounts, and earn some money, there are currently five banks offering sign-up bonuses. These are:

  • Lloyds Bank: £200, plus perks and good savings rates
  • NatWest: £180, plus rewards and a good savings rate
  • Nationwide: £175, plus a good savings rate and cashback
  • First Direct: £175, plus a £250 interest-free overdraft and a solid savings rate
  • Co-op: £75 to switch, and £25 per month (up to three) for staying, so up to £150 in total

 

Alastair Douglas, CEO of TotallyMoney, said: “They say that ‘money talks’, and that’s certainly true when it comes to current account switching offers. The latest figures highlight that the biggest winners by a distance were Santander and Nationwide, who were both more than £175 and £180 to switch banks.

“There was a period back in April when there were no cash incentives for switching. But with five banks now offering sign-up bonuses of up to £200, it’s worth looking at what’s available, and finding the best one for your needs. Some accounts will also come with better savings rates, while others will provide cashback or an interest-free overdraft.

“Most banks will now expect you to transfer direct debits to them, use their app, make payments with your new card, and deposit cash. So just make sure that you read the small print, because you won’t want to miss out on a technicality, or because you’ve failed to jump through all the hoops.”