Around 1.2 million current accounts were ditched and switched by customers in 2024, marking the second year in a row that the total was more than one million, according to a service set up to take the hassle out of moving banks.
Some 1,190,676 switches were processed by the Current Account Switch Service (Cass) in 2024. The service automatically moves payments from the old account to the new one and comes with a guarantee of individuals’ funds in case anything goes wrong. Additionally, those using the service can sometimes receive a cash switch offer as banks compete for their business.
The service has redirected 160.5 million payments during more than a decade of being in operation, with more than 11m people now using the service to change accounts since it was introduced.
A majority of banks are signed up to use the service in the UK - but among the most recent figures, spanning July to September of last year, it wasn’t a bank but a building society which was the top organisation for attracting newly opened current accounts using Cass.
Data showed that Nationwide Building Society had the highest net switching gains during the period, followed by Barclays, TSB and Lloyds.
The figures do not include customers switching outside the service. Research for the service indicates that, in general, online or mobile banking remains the top reason people prefer their new account. Cass said this has consistently been the case for consecutive quarters.
This reason for switching was followed by interest earned and customer service.
During the third quarter of the year, Nationwide had an offer on which could net eligible switchers £200 as a bonus.
Of those who switched their account, nearly three-quarters (72 per cent) said they prefer their new current account to their old one, with just 2 per cent saying it is in some respects worse.
John Dentry, product owner at Pay.UK, owner and operator of Cass, said: “2024 was yet another busy year for the service, and these figures are ultimately being driven by increasingly money-conscious consumers.
“Banking institutions, whether they be neobank disruptors or traditional high street banks, continue to present diverse, innovative and increasingly generous offers to win over hot-footed switchers.
“We’re pleased to see such high satisfaction and completion rates, cementing the service’s position as critical infrastructure which enables a healthy and competitive banking marketplace.”
Alastair Douglas, CEO of TotallyMoney, said: “More often than not, the best offers on the market lure the most customers. And this could be why Nationwide saw the biggest net gains during the summer months.
“Back then, they had a market-leading £200 switch bonus and a 5.5 per cent savings rate on up to £10,000 for 18 months.
“Following Nationwide were Barclays, TSB and Lloyds who were offering £175, £190, and £175 respectively.”
Andrew Hagger, a personal finance expert at Moneycomms, said: “The latest switching numbers provide further evidence that attractive cash handouts do drive new current account business.
“However, you have to question how many of these switchers are there for the medium to long-term or simply switch away to another bank with a new cash incentive a month or two down the line.”
Data showed Nationwide attracting 163,363 new current accounts during the final quarter of 2023, meaning their net gain through the current account switch service across a full 12-month period was in excess of 200,000, ahead of the release of final quarter data for 2024.
Here are the net gains or losses made by current account providers among customers using Cass between July 1 and September 30 2024. The figures show full account switches by customers using Cass to move their account:
Data for which banks gained or lost customers through the service is available three months later, meaning winners from the final quarter of 2024 will emerge in late March 2025.
