1.2m current accounts moved using switching service in 2024

January 30, 2025 Shehroz Malik No Comment 5 Views

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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. There is also a guarantee to ensure that people are not left out of pocket if anything goes wrong with the switch.

The service has redirected 160.5 million payments during more than a decade of being in operation.

Figures for July to September 2024 also 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.

Of those who switched their account, nearly three-quarters (72%) said they prefer their new current account to their old one, with just 2% 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% 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.”

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:

AIB Group (UK) minus 431

Bank of Ireland, minus 350

Bank of Scotland, minus 1,606

Barclays, 18,053

Co-operative, 1,100

Danish, minus 193

Halifax, minus 14,898

HSBC, 2,445

JP Morgan Chase, minus 1,883

Lloyds Bank, 10,018

Monzo, 5,256

Nationwide Building Society, 22,622