The Current Account Switch Service is in full swing, and since its launch in September 2013, more than 3.5m people have taken the plunge and switched current account. Have you been one of them? If not, it may be time to consider your options!
New figures show that 3,520,190 successful switches have taken place since the Current Account Switch Service launched, with 1.01m of those being in the last year (1 January to 31 December 2016), and 208,387 taking place in the last three months alone.
Not only that, but awareness of the service currently stands at 77%, with the recent multi-million pound media campaign thought to be the key driver behind this boost in awareness. Confidence is on the up, too, with 80% of respondents saying it would be easy to switch banks, and 77% saying it would be quick, highlighting the success of the scheme.
The whole system appears to be working well, with more that 99.5% of switches being completed within the seven working day timescale – as promised under the Switch Guarantee – and more than 18.2m payments being successfully redirected.
So just where are all those customers going? Well, looking closer at the figures suggests that many people could be switching to high interest current accounts, perhaps in an attempt to beat the paltry savings rates currently on offer.
After all, the figures show that the banks to see the strongest net gains during the second quarter of 2016 – the most recent figures available for this measure – were Santander (+46,208), Nationwide (+24,999), Halifax (+22,101) and TSB (+1,467). Given that these banks were sitting pretty at the top of the high interest Best Buy chart for much of last year – and many of them still are, except for Santander, which has recently cut its in-credit interest rate and moved down a few places as a result – we can assume that such deals are proving a huge incentive to switch.
It isn't hard to see why. Average savings rates are on a continued downward spiral, which means high interest current accounts could prove to be the perfect home for at least a portion of your savings. These deals are seemingly far more popular than accounts that come with other switching incentives, particularly given that many benefits are being scaled back, so if you're not taking advantage of such a deal, now could be the time to join the thousands of others and take the plunge.
Compare the top current accounts to find one that meets your needs
Check out the top six high interest current accounts
Find out how to switch current account with the help of the Switch Guarantee
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.