Huge rise in current account switches
Generous incentives helped boost switches between April and June 2023, which were up year-on-year.
There was a leap of 50% in the number of current account switches during the past 12 months vs the previous year, figures released today reveal.
The latest Current Account Switch Service (CASS) data shows 1,277,484 switches took place in the 12 months to 30 June 2023.
This includes over 338,000 current accounts switches between April and June 2023, which was 146,000 more switches than the same period last year – a rise of 76%.
NatWest is at the top of the podium for gaining the most customers in the first quarter of 2023. The bank was helped by its enticing switching incentive, which is currently £200.
What’s driving current account switches?
It’s hard to beat free money, and customers looking to switch their main current account were offered cash incentives aplenty (plus other gifts) by several banks and building societies.
Providers such as Royal Bank of Scotland (RBS, which is part of the NatWest Group) and TSB offered consumers as much as £200 to switch. The qualifying criteria were also generally easy to meet. Typically, customers had to pay in a certain amount every month and move several direct debits.
Several banks and building societies also provided generous interest rates on regular saver accounts linked to current accounts. NatWest continues to offer 6.17% AER on its Digital Regular Saver. And HSBC and Nationwide have announced increases in their interest rates for the next quarter after the base rate increase in June 2023 – perhaps looking to compete and encourage more switchers.
We’ve covered the latest switching deals and linked saving accounts in our best bank switching offers guide.
Which banks are people switching to?
UK current account holders can switch accounts using CASS, which is a free and independent service. Today, CASS published the total switches for the second quarter of 2023, and the numbers per bank for the first quarter of 2023.
Here are the banks with the highest net switching gains for January to March, 2023:
Both NatWest and RBS launched welcome gifts of £200 at the beginning of 2023 for new customers who switched. However, market-leading competitor TSB remained one of the better switching deals with a £200 bonus, savings account deals, and £5 monthly cashback.
Meanwhile, Santander has fallen from the top spot in the first quarter after ending its £200 switcher cashback incentive in February 2023.