Santander and Halifax still the preferred choice for current account switchers

  • Santander remains ahead of Halifax as number one choice for current account switchers

  • 4 high street banking giants lose more than a quarter of a million accounts to rivals between them in 2014

  • Rewards appear to be the main driver for switchers

Andrew Hagger  looks at the latest data on current account switching. (Bacs latest figures are Q4 2014 but I have amalgamated the stats to show figures for the whole of 2014)
The figures for the high street giants paint a grim picture with Barclays (98400), NatWest(71040), HSBC (44953) and Lloyds Bank (45119) showing a combined net loss of more than quarter of a million (259,512) customers during 2014. (note Lloyds Bank figures included TSB for Q1 and Q2 2014)
By contrast Santander saw a net gain of 186,183 in the same 12 month period; this is no doubt partly 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 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 and this marries up with the latest Bacs switching statistics where Halifax (£5 monthly reward) and Santander (cashback on utilities and up to 3% credit interest) are both beating the competition hands down.
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).
TSB will be disappointed to see a net loss of 6,847 customers (last 6 months of 2014).
Please see attached spreadsheet showing a breakdown of switching gains, losses and net position for the whole of 2014.

Current Account Switching Q1-Q4 2014 July 2015

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