Halifax and Santander reap the benefit of new switching system whilst Barclays lose customers

In the last year the amount of people switching their current accounts went up by 7%. Since last March, over 80,000 more people have switched their current account to a new bank than in the previous year. 

Halifax and Santander have gained the most customers, with Barclays losing the most.

The only other two banks to make net gains in switching customers are Nationwide and Tesco.

Halifax received an increase of over 50,000 new customers and Santander saw rises of over 40,000.

Barclays saw many of its customers switch to their competitors. Overall they have lost over 30,000 customers, which is more than any other bank.

Other banks that saw a high number of customers switching away were HSBC, Lloyds and Natwest.

The winning banks have all brought out new and appealing current accounts, since the rules regarding switching were changed.  This change to the rules was intended to make it easier for a customer to switch their current accounts; something that has certainly happened.

Santanderís 123 current account gives customers cashback deals and also has 3% interest.  This all comes with a monthly fee of just £2.

Halifax offers £125 to anybody who switches to their new account.  The account also comes with a reward scheme that requires a monthly fee of only £5.

Nationwide are offering interest rates of 5% for the first year that the account is held ñ on balance of up to £2,500.

The head of current accounts at Halifax, Nick Young stated:

‘We are delighted that Halifax remains such a popular choice for customers looking for a rewarding current account.

Our focus very much remains on continuing to reward our customers, making banking with us extra easy and providing the highest levels of customer service.’

The competition appears to be heating up as other banks are now starting to respond with new current account deals of their own.

The ìBlue Rewardsî scheme was announced by Barclays last week.  The account offers customers up to £144 per year for a fee of just £3 a month.

Lloyds have also offered a new current account that offers interest rates of 4% for people with balances between £4,000 and £5,000.

The Financial Conduct Authority’s recent review of the switching service made recommendations to encourage more switching, such as allowing customers to keep their bank number if they change providers, and if these go ahead we may see further improvement on figures in the future.’

The new system for switching current accounts allows customers to switch banks in about 7 workings.  This represents a significant drop from 30 days, which was the average under the old rules.

Find a suitable current account with MoneyExpert.com.

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