Britons are opting to switch bank accounts to take advantage of high interest rates on savings accounts and free cash incentives from high street financial institutions, according to new data.
The Current Account Switch Service (CASS) facilitated 1.2 million bank account switches in 2024, marking the second consecutive year that switches have exceeded one million.
This high volume of switches came during a year characterised by cost of living increases, inflationary pressures and changing interest rates; the latter triggered by the Bank of England’s decision-making.
Operating over the last 11 years, CASS has now successfully redirected more than 160.5 million payments.
The switching ecosystem remained bustling throughout 2024, maintaining the momentum from a record-breaking 2023.
According to CASS, the service experienced its busiest ever week in April 2024, with 57,874 switches taking place during the week of April 12.
A single day, April 10, saw over a third of that week’s switches with 23,981 customers changing banks.
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The Current Account Switch Service reported 1.2 million switchers last year
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November proved to be the most active month in the final quarter of 2024, as consumers prepared for Christmas spending. During November, 121,545 account holders switched their banking provider.
The final quarter of 2024 saw a total of 309,290 switches completed through the service. Nationwide Building Society emerged as the top performer for account switching between July and September 2024, securing net gains of 22,622 customers.
Barclays followed in second place with 18,053 net switches during the same period. TSB attracted 12,282 new customers through the switching service in the third quarter.
Lloyds Bank rounded out the top four performers, gaining 10,018 new account holders. These figures, which are reported with a three-month delay, demonstrate strong competition among major banking providers.
High street banks are promoting “generous offers” to customers
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Online and mobile banking remained the primary motivation for switching accounts, with 46 per cent of customers citing this as their main reason. Interest earned on accounts was the second most important factor, driving 37 per cent of switches.
Customer service quality influenced 32 per cent of account holders who made the change. Spending benefits, including cashback and account fees, motivated 27 per cent of switches – a level not seen since early 2023.
These preferences reflect a growing focus on digital banking capabilities and financial returns among UK account holders. Customer satisfaction with the switching service remained exceptionally high, with 91 per cent of users reporting they were satisfied with the process.
Some 90 per cent of bank customers polled by CASS said they would recommend the service to others. Around 72 per cent of switchers preferred their new current account to their old one, with only two per cent reporting it was worse.
John Dentry, the product owner at Pay.UK, said: “2024 was yet another busy year for the Service, and these figures are ultimately being driven by increasingly money-conscious consumers.
“Banking institutions, whether they be neobank disruptors or traditional high street banks, continue to present diverse, innovative and increasingly generous offers to win over hot-footed switchers.”
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Britons are on the hunt for the accounts with the best savings interest
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CASS reports that is has maintained its efficiency, with 99.7 per cent of switches completed within seven working days.
Small businesses and charities showed distinct switching patterns in the final quarter of 2024.
October saw the highest number of business and charity switches at 2,057. The total number of business and charity switches for the quarter reached 5,383.
Dentry added: “We’re pleased to see such high satisfaction and completion rates, cementing the Service’s position as critical infrastructure which enables a healthy and competitive banking marketplace.”
