Santander is most popular bank for current account switchers

22nd July 2015


Santander was the most popular bank for people switching current account last year, new calculations reveal.

Four high street banking giants lost more than a quarter of a million switchers between them in 2014, analysis by Andrew Hagger of Moneycomms has found.

The figures for the high street giants show a combined net loss of 259,512 customers, with Barclays  down 98,400, NatWest down 71,040, HSBC down 44,953 and Lloyds Bank down 45,119.

By contrast Santander saw a net gain of 186,183 over the same period, which Hagger says probably due to rock bottom savings rates and the attractive interest rate of 3% paid on current account credit balances between £3,000 and £20,000.

Halifax ended up in second place with an extra 150,401 switchers in 2014 with the £100 introductory switching payment and £5 monthly reward (if always in credit) proving to be a powerful lure.

New research this week from Aimia the marketing and loyalty analysts revealed that 33% of people pointed to loyalty rewards as the biggest influencers when choosing a current account.

This seems to be the case for current account customers as Halifax (£5 monthly reward) and Santander (cashback on utilities and up to 3% credit interest) are both gaining large volumes of switchers from their rivals.

Nationwide Building Society and Tesco Bank the only other providers reporting steady growth – up 37,305 and 4,484 switchers respectively in 2014 (note Tesco Bank figs are only for last 6 months of 2014).

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