13.12.2024

Nationwide gains most amount of current account switchers

Nationwide Building Society is the clear winner in the current account switching battle, attracting nearly four times as many customers as its nearest rivals.

Britain’s biggest mutual won over 38,683 more switchers than it lost in the first three months of the year, according to the latest data from payment provider Bacs.

The figures also reveal, however, that appetite for switching has dipped 15.7 per cent in the 12 months to the end of September 2017 with 892,643 switches compared to 1,059,674 in the same period a year earlier.

Nationwide: The building society offers FlexDirect – which comes with 5% interest on balances of up to £2,500 for the first year

This is despite the current account switching advertising campaign reaching 93 per cent of the adult population and 99.4 per cent of switches being completed in a seven-day timeframe.

Drilling into the data, Nationwide top the charts for switchers.

Nationwide: The building society offers FlexDirect - which comes with 5% interest on balances of up to £2,500 for the first year

Many have been tempted into its FlexDirect offering, which comes with five per cent interest on £2,500 in the first 12 months of opening.

Santander, which frequently topped the current account switching charts in recent years, saw 24,019 switch to the bank – but lost 26,305. This is doubtless a result of its 123 current account no longer offering a top tier of three per cent of interest on balances up to £20,000.

Battle of the banks: Nationwide BS is the clear winner in the current account switching stakes

Battle of the banks: Nationwide BS is the clear winner in the current account switching stakes

Many of the high street giants lost far more switchers than they gained, the figures show.

The biggest losers were Barclays, with a net 16,056 switching away from the bank.

NatWest lost a net 10,264 customers who switched elsewhere, Lloyds Bank 8,765 and RBS 7,516.

Another big loser was Clydesdale Bank, where a net 12,857 left the bank for pastures new.

This may partly suggest why it is now offering a £250 switching incentive.

Behind Nationwide, TSB had a net inflow of 11,750 customers, followed by HSBC at 8,686 – although the HSBC figures also include popular First Direct and M&S Bank.

Halifax saw a net inflow of 4,979 customers.

The switching service has helped move 4.2million accounts since it launched in 2013 – but the drop off of those using the service may suggest that people are switching and sticking with their new provider.

The report added: ‘The advent of Open Banking, PSD2 and GDPR will make it more important than ever to look beyond headline figures, such as switching volumes and customer awareness, to understand better how the market is responding.’

FIND A BETTER BANK ACCOUNT 

If you’re fed up with your bank there are plenty of reasons why now is a good time to switch to another provider. This is Money, has a regularly updated guide to the best offers carefully chosen by its expert writers at Five of the best Current Accounts.

We round up some of the best deals on offer below:

Free money and incentives

First Direct pays £125 to new customers who switch to its First Account (until December 11). The account comes with a £250 fee-free overdraft buffer and access to its popular Regular Saver, paying 5 per cent on up to £3,600 per year (£300 per month).

M&S Bank’s current account has a £185 gift card offer for switching to it. That’s £125 when you sign up and £5 per month for up to 12 months, as long as you pay in £1,000 per month. You also get 1 point for every £1 spent on your M&S debit card in store in the M&S Loyalty Scheme. An attached regular saver pays 5 per cent.

Halifax is offering £75 to switch to one of its current accounts. Those with a Reward Account also get a £3 monthly reward if they pay in £750 and maintain two direct debits.

The best interest-paying accounts

The best interest-paying account for you will depend on the level of your balance and your monthly deposit amount.

Santander’s 123 Account to 1.5 per cent interest on up to £20,000, a top deal for anyone with a large balance. It also pays up to 3 per cent tiered cashback on household bills, however it has a monthly charge of £5.

Nationwide FlexDirect pays 5 per cent interest on balances up to £2,500 – but this only for the first year. You must pay in a minimum monthly income of £1,000.

TSB’s Classic Plus account offers 3 per cent interest on the first £1,500 in your account plus you get up to £10 each month if you maintain two direct debits from the account and make at least 20 debit card payments a month (until June 2018). The account requires a £500 monthly deposit

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