Threefold Increase in Switching Since Launch of Current Account Switch Service

3rd September 2014

- New figures reveal a 276% year-on-year increase in current account switching.

- First Direct hailed as the best bank by consumers, coming top in eight of nine categories in the 2014 uSwitch Current Account Award.

Two weeks ahead of the one year anniversary of the Current Account Switch Service, new figures from uSwitch.com - the independent price comparison and switching service – reveal that switching has increased by 276% since the service was launched.

The guarantee that consumers can switch current accounts in seven days has also prompted movement in the market from new entrants - including M&S Bank, The Post Office and Tesco Bank.

Meanwhile, existing players have focused on making their offerings more attractive, attempting to win customers over with rewards. First Direct's 1st Account, for example, continues to pay a £100 cash incentive to those who switch, while Santander's 1/2/3 Account offers monthly cashback on selected household bills and a 3% interest rate on balances over £3,000.

First Direct was recently voted the best current account provider in the 2014 uSwitch Current Account Awards, and deemed to have a better switching service than any other bank. Santander's innovative cashback programme saw it jump to fourth place – up from last place in 2013 – and win the 'Best Rewards' category. Additionally, the latest figures from Santander show almost one in four current account switchers have joined it since the launch of the service.

David Mann, Head of Money at uSwitch.com, says: "With the Current Account Switch Service anniversary just weeks away, this threefold rise in switching is a clear indication that consumers are taking control and making the banks work for them.

“Our research shows that six in ten customers (59%) have been with their bank for more than ten years, down from 72% last year[4] – a further sign that more of us than ever no longer see our bank as a lifetime companion. This is great news for competition, as it means banks are going to have to work even harder to keep existing customers and attract new ones.