The Current Account Switch Service was launched in 2013 as a way to boost competition in the banking sector and encourage consumers to seek a better deal, and it appears to be having the desired effect, with new figures showing that over 3 million current accounts have been switched since the scheme's launch.
A rising number of people seem to be taking the plunge, too, with 567,677 switches taking place in the first six months of the year – a 4% increase compared with the first half of 2015 – while 1.05 million were recorded in the last 12 months. Much of this growth could be attributed to growing awareness of the scheme, with 75% of survey respondents now aware of the switch service, an increase of 17 percentage points since the scheme's launch.
But just where are all those switchers going, and why? Well, the beauty of the scheme is that switching accounts is now a hassle-free process – everything will be taken care of within seven working days, and the addition of the Switch Guarantee means that you'll be compensated should anything go wrong – so if you're not happy with your current bank account or its service for any reason at all, you can quickly and simply switch to a better deal.
It looks as though Halifax is the bank of choice for those switching, too, with additional figures revealing that over 460,000 customers have switched to the bank since the scheme's launch. Indeed, in the final quarter of 2015, the bank recorded a net gain of 31,000 new customers, more than any other bank or building society in the scheme.
Other big winners include Nationwide, who saw a net gain of 26,150 new customers over the same period, while TSB recorded a gain of 9,604 customers – and it's particularly interesting to note that these three banks are right at the top of our high interest account best buys.
Considering the amount of competition taking place in the current account sector at present, it's little wonder that so many people are taking the plunge. There are plenty of good deals out there, and you can get far more than just the basics – there are accounts paying interest rates that beat those of traditional savings accounts, those offering fee-free overdrafts and even accounts that come with generous reward schemes and incentives, so there are plenty of reasons to see what else is out there.
Get in on the action! If you're not happy with your account, compare the alternatives to see if you can get a better deal – and thanks to the Current Account Switch Guarantee, you can switch with confidence
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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