Current account switches fell 10% in 2015
22/01/2015
The number of people switching bank accounts fell by 10% last year, despite high profile campaigns aimed at encouraging people to switch.
Payment system operator Bacs published figures showing that 1.03 million people changed their current account provider last year, compared to 1.15 million in 2014.
The Current Account Switching Service (CASS) was created in 2013 to help increase competition in the current account market and promote better deals for consumers. The service has claimed that although switching rates were low throughout the year, they improved by 11% in the last quarter of 2015 as a result of their media campaign.
Santander, Halifax, Nationwide and Tesco all gained customers through the new current account switching service last year. Santander saw the greatest increase, with 66,000 new accounts opened over the course of 2015, despite them increasing the monthly fee on their 123 current account, which offers 3% interest, from £2 to £5. Halifax offers customers £100 to switch, Tesco offers Clubcard points and 3% interest on balances and Nationwide customers can get 5% interest on balances up to £2,500.
Barclays, NatWest, Royal Bank of Scotland and Lloyds all lost customers.
Richard Neudegg, head of regulation at uSwitch.com said:
"Despite 2015 seeing some of the best financial incentives for switchers, many still struggle to see the value in switching.
"The banks need to up their game and do more to help their customers understand their current account usage by prompting them with clear information."
Need Financial Advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
CMA launches bank account competition investigation
06/11/2014 The Competition and Markets Authority (CMA) have announced a full competition enquiry into current account and small business banking markets, as they aim to boost competition in the high street. The CMA will be investigating lack of transparency in the sector, as they believe complex overdraft charges make it tough for consumers to find the best deal. Fewer customers seem to be...
Read MoreIs it ever too soon to teach your children about finance?
Each and every one of us will have been through difficult financial situations in our lives, we will have been short of money at some time, we will have overspent but ultimately we should be passing on these experiences to our children. It is never too soon learn to start to teach your child about finance, about the value of money and the cost of living although you do need to be careful about how...
Read MoreMarks and Spencer Current Account to Cost £20
The new current account offered by Marks and Spencer will cost consumers £20 per month, or £240 per year. As well as this, in order to gain the perks of the account, holders are required to pay at least £1000 though the account per month. Once you look past the price of the account however, there are many advantages that come tailored towards M&S customers. These include worldwide travel...
Read MoreRBS ringfences £38bn worth of bad assets
01/11/2013 The Royal Bank of Scotland has today ended speculation of the bank being split into good banks and bad banks by placing £38bn worth of ‘bad assets’ into an internal ringfenced bank. A review into the possibility of creating an external bad bank was concluded to have unjustified “effort, risk and expense.” The review which was conducted by Rothschild Investments said that...
Read MoreSantander ups fees on “123” current account
14/09/2015 Santander, one of the UK’s biggest banks, have announced that they are more than doubling the charges on it’s main current account, leaving customers out of pocket. The current costs of Santander’s main current account stands at £24 a year. In January, this will be increased to £60 a year. The bank will also be increasing the fees on its main credit card from £24 to £36...
Read More