More of us than EVER switched bank accounts for a £200 Christmas bonus
- Record bank changes took place between October and December 2023
- NatWest attracted a net 59,000 customers from July to September 2023
- HSBC gained 25,000 more customers than it lost in the same period
At the end of 2023, more people than ever switched to a new bank, meaning they could receive bonuses of up to £200 before Christmas.
Between October and December 2023, 433,701 bank transfers took place – the highest quarterly figure ever measured, according to figures from the Payment Account Switching Service (Cass).
November saw the highest number of monthly transfers since the service was launched more than ten years ago: 162,637 took place.
This brings the total number of switches since September 2013 to 10.2 million.
Switch rush: According to the Current Account Switching Service, more customers than ever rushed to switch bank accounts in three months
Customer data, which is three months out of date, shows that retail giant NatWest made the biggest net switching gain, gaining 59,158 more customers than it lost due to the switch completed between July and September 2023.
This is the second quarter in a row in which NatWest recorded the largest net profit for customers. Between April 1 and June 31 this year, NatWest gained 99,695 more customers than it lost.
It is followed by HSBC, which gained 25,037 more customers than it lost. HSBC contains First Direct brand switches. TSB gained 15,754 more customers than it lost between July and September 2023.
NatWest, HSBC and TSB all offered hefty switching bonuses of £200 between July and September 2023.
Commenting on the figures, Andrew Hagger, founder of personal finance website MoneyComms, said: ‘The latest figures from Cass once again confirm that offering a financial incentive is attracting new customers, with NatWest gaining a net 59,158 switching customers, HSBC a net 25,037 customers and TSB a net profit of 59,158. 15,754 net.
‘They all offered a £200 payment for switchers in the third quarter of 2023.
‘HSBC and NatWest offered £200 for much of 2023 and that is reflected in their strong performance in 2023, with NatWest adding a net 204,504 customers in the first nine months of last year, while HSBC added 75,652 in the same period. ‘
Challenger banks Monzo and Starling posted net losses of 3,197 and 1,999 respectively.
None of these challenger banks offer cash bonuses to switching customers.
Major bank Santander had the largest net losses, losing 27,604 more customers than it could attract.
| Bank | Gain | To lose | Net profit |
|---|---|---|---|
| Bank of Scotland | 2,731 | 4,204 | -1,473 |
| Barclays | 4,927 | 29,030 | -24,103 |
| Halifax | 27,732 | 44.06 | -16,334 |
| HSBC | 68,360 | 43,323 | 25,037 |
| JPMorgan Chase | 6,135 | 6,275 | -140 |
| Lloyd’s Bank | 27,762 | 30,888 | -3,126 |
| Monzo bank | 13,531 | 16.72 | -3,197 |
| Nationwide | 12,995 | 29,498 | -16,503 |
| NatWest | 94,796 | 35,638 | 59,158 |
| RBS | 18,151 | 11,769 | 6,382 |
| Santander | 9,371 | 36,976 | -27,604 |
| Starlingbank | 9,705 | 11,704 | -1,999 |
| TSB | 28,769 | 13,015 | 15,754 |
| Ulsterbank | 4,195 | 2,310 | 1,895 |
| Virgin money | 2,153 | 9,161 | -7,008 |
| Source: CAS | |||
Why are so many people switching?
De Cass says higher switching rates may indicate that both consumers and businesses are reevaluating their existing accounts amid ongoing economic uncertainty.
Account holders should explore banks and building societies that offer more tailored services or promotional offers that better suit their needs, the report said.
But it’s far more likely that savers were keen to scoop up switching bonuses before they disappeared, and flocked to the banks that offered them.
Hagger says: ‘Nationwide had a £200 offer with a regular savings deal of 8 per cent from the start of this quarter until December 23, and I’m sure this would have been very popular.’
Is this the end of the £200 switching bonus?
NatWest, Nationwide, HSBC and TSB all offered hefty £200 switching bonuses at different times in 2023.
Now the highest switching bonus customers can find is £175, offered by First Direct.
Hagger says: ‘The number of switching offers has decreased in 2024, with only First Direct (£175) and TSB (£125) currently offering cash rewards for bank switching.
“Whether this is just a pause or perhaps the beginning of the end of the financial incentives, time will tell, but without the incentives it is very likely that switching numbers will fade.”