76% annual jump in current accounts being switched

A total of 338,194 switches took place using the Current Account Switch Service between April and June.

The number of current account switches being made surged by 76% between April and June compared with a year earlier, according to the Current Account Switch Service (Tim Goode/PA) (PA Archive)

The number of current account switches being made surged by 76% between April and June compared with a year earlier, according to a switching service.

A total of 338,194 switches took place during the period, compared with 191,777 in the second quarter of 2022.

Those who switched current account through the service cited better online or mobile app banking, customer service and financial factors as their reasons, according to the Current Account Switch Service (Cass).

The service underpinned 1,277,484 switches between July 1 2022 and June 30 2023, marking a 50% year-on-year increase on the 850,243 switches between July 2021 and June 2022.

Its latest figures, covering January to March 2023, indicate that NatWest recorded the highest net switching gains among customers using Cass (45,651), followed by HSBC (28,486), Lloyds Bank (10,959), and RBS (4,165).

This quarter's switching figures demonstrate a healthy and competitive switching environment for consumers and businesses during a time of economic uncertainty with high inflationary pressures

John Dentry, Pay.UK

At the other end of the spectrum, Nationwide Building Society made 34,259 net switching losses in the first quarter of 2023, while Halifax lost 21,322 and Barclays lost 18,655. The figures do not cover switches made outside Cass.

The service takes the hassle out of switching by automatically moving payments over to the new account and a switching guarantee means customers should not be left out of pocket if something goes wrong with the switch.

Several providers have been offering money to switch current account and have also improved their savings rates as the Bank of England base rate has increased.

John Dentry, product owner at Pay.UK, owner and operator of Cass, said: “The service continues to play a vital role in allowing people and businesses the flexibility to change accounts and find a banking partner that better suits their needs.

“This quarter’s switching figures demonstrate a healthy and competitive switching environment for consumers and businesses during a time of economic uncertainty with high inflationary pressures.”