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).