NatWest scoops up 127,917 new customers in three months with £200 switching deal as 1.4MILLION people shift their current accounts
- NatWest gained 99,695 more switchers than it lost between April and June 2023
- HSBC UK, RBS and Ulster Bank also posted strong profits in the same period
- But Santander lost more customers to other banks than any other provider
NatWest and HSBC UK are the two banks bringing in the most customers – all thanks to generous cash-switch offers.
NatWest gained 99,695 more customers than it lost between April 1 and June 31 this year, according to new data from the Current Account Switch Service (CASS), which is three months behind.
During these three months, NatWest secured a £200 switching deal – its highest ever incentive – which savings experts say was responsible for bringing in so many switching customers.
NatWest’s net profit – the difference between the number of customers won and lost – shot up 118 per cent to 99,695 in three months, up from 45,651 in the first three months of this year.
NatWest acquired 127,917 new customers through its Current Account Switch Service in three months between April and June this year
NatWest offered the £200 within seven days, which clearly proved popular.
Three other major banks, HSBC UK, RBS and Ulster Bank, also gained more customers than they lost through switching between April and March this year.
HSBC UK, including sister bank First Direct, gained 25,769 more customers than it lost, while RBS had 16,017 net switchers. Ulster Bank gained 2,330 more customers than it lost. RBS and Ulster Bank are part of the NatWest group.
Andrew Hagger, founder of personal finance website MoneyComms, said: ‘The level of switching activity is still largely driven by the big banks’ cash transfer offers.
‘NatWest launched its highest ever incentive of £200 on February 14, promising that the transfer fee would be paid within seven days of completing the switch.
‘HSBC UK did well thanks to similar offers running within the same three-month period. First Direct launched a £175 switching deal and HSBC’s £200 switching deal was launched on April 17.
“When these switching deals end, some customers will switch again in search of the next free cash release.”
On the other hand, Santander lost 32,560 more customers than they gained, followed by Halifax, Barclays and Nationwide Building Society.
Hagger said: ‘Santander is likely to have been affected by the expiry of the transfer agreement as an offer of £200 was made from January 23 to February 7.
| Bank | Gain | To lose | Net profit |
|---|---|---|---|
| Bank of Scotland | 2,392 | 4,274 | -1,882 |
| Barclays | 5,291 | 26,889 | -21,598 |
| Halifax | 22,488 | 44,502 | -22,014 |
| HSBC | 68,736 | 42,967 | 25,769 |
| Lloyd’s Bank | 28,107 | 30,925 | -2,818 |
| Monzo bank | 10,433 | 19,513 | -9,080 |
| Nationwide | 10,042 | 30,636 | -20,594 |
| NatWest | 127,917 | 28,222 | 99,695 |
| RBS | 25,888 | 9,871 | 16,017 |
| Santander | 5,860 | 38,420 | -32,560 |
| Starlingbank | 10,192 | 13,123 | -2,931 |
| TSB | 1,893 | 14,980 | -13,087 |
| Ulsterbank | 3,791 | 1,461 | 2,330 |
| Virgin money | 2,051 | 8,213 | -6,162 |
| Source: CAS | |||
The latest CASS figures suggest that current account switching is still widespread as cash-strapped customers look for ways to make money.
There were 1.4 million current account changes between October 2022 and September 2023, an increase of 63 percent compared to the same period in 2022.
While 344,195 transfers took place in the three months between July 1 and September 30, 2023, an increase of 55 percent compared to the same period in 2022.
Hagger says: ‘The double whammy of increasingly tempting lucrative cash offers of over £200 and people desperate to find ways to earn more money to survive the cost of living and pressure on mortgage rates is increasingly driving people to switch and make some easy money for a lot of money. little effort.’
NatWest withdrew its £200 transfer agreement on 11 September 2023.