Current account switch offers: best UK current account banks to switch to - including Barclays and Halifax

The latest industry data has revealed that Nationwide Building Society, Barclays and Lloyds Bank experienced significant growth in customer numbers utilising the Current Account Switch Service (Cass) during the last quarter of 2023.

From 1 October to 31 December, Nationwide achieved a net gain of 163,363 full account switches, while Barclays and Lloyds secured 12,823 and 5,800 net gains respectively, as reported by Cass.

Conversely, NatWest suffered 43,182 net switching losses, followed by RBS with 11,621 losses, Halifax with 41,144 losses, and Santander with 34,581 losses.

The figures do not include current account switches made outside the service, which ensures that payments are automatically moved to the new bank account and offers a guarantee that customers will not be left out of pocket if anything goes wrong.

Andrew Hagger, a personal finance expert and founder of Moneycomms.co.uk, said: “Consumers are happy to jump ship for the next freebie – particularly as people are still feeling the squeeze from higher bills.”

But which banks saw the most customers switching to them in that time period, and what should you bear in mind if you’re looking to make the switch yourself? Here is everything you need to know:

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What’s the best bank to switch your current account to?

Hagger said ”Nationwide blew the competition away” in the fourth quarter of last year,” and suggested that its £200 switching incentive last autumn may have helped attract customers.

When switching your current account to another bank or building society, there are several factors to consider to ensure a smooth transition and to maximise any benefits.

Before switching, research various banks and building societies to compare their offers, including interest rates, fees and additional perks. Look for any cash incentives or promotional deals offered for switching.

Many banks offer cash incentives to attract new customers. These incentives can vary in amount and terms, so carefully review the requirements to qualify for the cash bonus. Ensure that the incentive aligns with your banking needs and preferences.

But research released by financial information website Moneyfactscompare.co.uk this week indicated that cash-to-switch offers have been vanishing.

A £175 switching offer from First Direct, which launched on 26 March, ended on Monday (22 April), following several other banks pulling their cash sweeteners.

Alastair Douglas, CEO of TotallyMoney, said: “If, and when cash bonuses return to market, let’s just hope they’re simple and easy to understand. Recently, we’ve seen some banks ask customers to jump through multiple hoops to secure the headline offer, including minimum transaction numbers, app logins, and even setting up a separate savings account.

“But whatever does happen, it’s probably worth checking to see if you can secure improved rates, cheaper overdrafts and a better service elsewhere.”

Here are the net switching gains or losses made in the fourth quarter of 2023 by banks, according to figures published by Cass. The figures do not include switches made outside the service and are provided voluntarily by banks:

• Nationwide, 163,363
• Barclays, 12,823
• Lloyds Bank 5,800
• Triodos Bank, minus 25
• Danske, minus 236
• Bank Of Ireland, minus 563
• AIB Group (includes Allied Irish Bank brand switches), minus 807
• Starling Bank, minus 1,712
• Ulster Bank, minus 2,587
• Bank of Scotland, minus 3,024
• JP Morgan Chase, minus 3,055
• HSBC (includes First Direct brand switches), minus 3,263
• Co-operative Bank (includes Smile brand switches), minus 4,238
• Monzo, minus 5,336
• Virgin Money, minus 8,592
• TSB, minus 10,917
• RBS (includes Coutts and Isle of Man brand switches), minus 11,621
• Santander, minus 34,581
• Halifax, minus 41,144
• NatWest, minus 43,182

What else to consider when switching current accounts

Evaluate the ease and convenience of the switching process. Many banks offer a switching service to transfer direct debits, standing orders, and incoming payments from your old account to the new one seamlessly. Confirm whether the new bank provides this service and inquire about any associated timelines.

Consider the features and benefits offered by the new account, such as overdraft facilities, interest rates, mobile banking apps, and customer service quality. Ensure that the new account meets your financial requirements and offers additional value compared to your current account.

Review the fee structure of the new account, including monthly maintenance fees, overdraft fees, ATM charges, and transaction fees. Calculate the potential cost savings or additional expenses associated with the new account to determine its overall value.

Look beyond the initial cash incentive and assess the long-term benefits of switching to a new bank or building society. Consider factors such as ongoing rewards, loyalty programs, interest rates on savings accounts, and customer satisfaction ratings.

John Dentry, product owner at Pay.UK – owner and operator of Cass, said: “Cash incentives continue to be a highly effective way for banks to attract customers, but as we repeatedly see through our data, online or mobile app banking remains the top reason why people prefer their new account.”

Research customer reviews and the reputation of the bank or building society before making a decision. Look for feedback on customer service quality, reliability and satisfaction levels to gauge the overall experience of banking with the institution.

Carefully read the terms and conditions associated with the new account, including any eligibility criteria for cash incentives or promotional deals. Pay attention to any minimum deposit requirements, account maintenance rules and conditions for receiving the bonus.