NatWest steals 83,000 new customers from other banks with its £200 switching bonus

According to the Current Account Switch Service, NatWest switched 83,131 new people’s bank accounts in the first three months of the year.

The banking giant posted the highest net switching profits of any bank between January and March 2024, new data lagged by three months shows.

The banking giant gained 60,497 more customers than it lost during this period.

After NatWest, RBS, TSB and Lloyds Bank followed with the highest net switching profits.

RBS gained 13,210 more customers than it lost, while TSB made a net profit of 11,640 and Lloyds made a net profit of 11,076. So NatWest was miles ahead in the eyes of people switching bank accounts.

In February 2024, NatWest paid a £200 switching bonus to new members. The cash bribe was clearly a big draw for many customers and blew away NatWest’s competitors.

Lloyds Bank at the time introduced a switching discount of £175 through its Club Lloyds account.

Before these deals launched in February 2024, there were no other cash bonuses available when switching, apart from NatWest and Lloyds.

NatWest has withdrawn the £200 switching discount in April 2024.

In the last three months of 2023, NatWest lost 43,000 more customers than it gained.

The biggest winner from the switch at the time was Nationwide, which gained a whopping 163,000 more customers than it lost.

This surpassed the previous largest quarterly profit of 111,941, also by Nationwide, in the final three months of 2022.

Andrew Hagger, founder of the website MoneyComms, said: ‘The NatWest figure is impressive and was driven by a £200 switching discount offered from 15 February to 2 April.

‘It was a good quarter for NatWest, but the big question is how many of those customers will stay and how many will soon leave in search of new borrowing.’

There are now more switching bonuses on the market, as banks increasingly care about their customers’ savings.

First Direct, Barclays and Lloyds offer a £175 switching bonus, while Co-op pays £160 to new customers who transfer their current account.

The data shows that the current account switching service enabled 313,293 bank account switches between April and June 2024.

According to the CASS: ‘In a quarter in which interest rates are stable and switching incentives are sporadic, the figures provide a positive outlook for the long-term health of the current account market.

‘The CASS has facilitated 1,411,553 transfers over the past 12 months, an increase of 10 percent compared to the 1,277,484 transfers recorded in the previous 12 months.

‘The continued upward trend in switching shows that finding the right bank or building association remains a priority.’