22nd April 2016
Some 309,678 current account switches took place in the first three months of this year according to BACs which runs the Current Account Switch Service.
This is a 20 per cent increase in the number of switches completed compared to the fourth quarter of 2015 and 10 per cent more than the same period last year.
March 2016 saw the highest number of monthly switches (124,615) since the service launched in 2013.
Overall there have been more than 2.8 million switches, with 1.06 million completed in the period from 1 April 2015 to 31 March 2016, compared to 1.13 million switches in the previous 12 months.
By the end of last month 71 per cent of people in the UK were aware of the Current Account Switch Service – which represents an increase of 13 percentage points since launch.
Commenting on the rising number of current account switches as announced by the Current Account Switch Service, Gocompare.com’s head of money, Matt Sanders, said: “Current accounts are historically one of the least switched financial products, with most people sticking with the same account for their entire lives, even if it’s not the best one for them. As such, record current account switching numbers are encouraging news, but there is still some way to go.
“New innovations such as the midata current account switching service, which Gocompare.com launched with the Government last March, mean that it has never been easier for people to cut through the clutter and find the right current account for them. The midata service, which is the only one of its kind in the UK, analyses customers’ actual current account usage, making thousands of calculations to show people, in pounds and pence, the best current account for them. This effectively takes all the guess work out of picking a new account.
“Not only has it never been simpler to switch, but with some really attractive interest rates and offers available through current accounts, now is a really good time to reconsider what you’re getting from your existing provider and seeing if you could be better served elsewhere. The interest rates available in current accounts at the moment trump the best the ISA market has to offer, and with new challenger banks entering the fray, there are some genuinely new offerings for customers.”