Which banks are winning the switch war?

switching banks
22 April 2016

More people are switching bank accounts than ever, but with so many options out there, it is difficult to know where you should be looking for a better deal.

As for which bank you should switch to, that's a trickier question as there are so many variables, dependent on what you actually want from your current account.

uSwitch have a handy tool, so you can compare and contrast what's being offered, and you can check that out here.

If you're wondering what everyone else has been doing, it certainly appears that some banks are doing much better than their rivals when it comes to people ditching their existing bank for them.

Three banks doing well out of the whole switching climate are Santander, Halifax and Nationwide Building Society.

Santander gained around 51,000 customers using the switching service between July and September, thanks mainly to their 123 account which gives cashback on bills, and 3% interest.

Nationwide is paying current account customers interest of (up to) 5%, and some Halifax customers are enjoying a £5 reward every month. Tesco Bank and TSB are also performing well.

Losing out in all this, are Barclays, NatWest, RBS, Lloyds, and HSBC.

This is according to figures from Bacs, who oversee the switching service for current accounts. There are more people switching accounts outside of this service, and just doing it all themselves by opening up a new account, then closing their old one with no assistance.

Basically, through this service, you can now do a switch in seven working days, instead of the 30 day period we put up with previously. Since the service launched in 2013, there's been over 2.8 million switches.

Kevin Mountford, head of banking at website MoneySuperMarket, said: "While the increase in figures is positive news, the number of switches is still comparatively small, given there are 65 million active current account holders in the UK."

TOPICS:   Banking   Economy

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