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Slight increase in current account switchers

Slight increase in current account switchers

Category: Banking
Author: Lieke Braadbaart
Date: 30/04/2018

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Whether it's poor service, IT problems or simply in search of a better deal, the latest data from the Current Account Switch Service shows that more people have switched their current account in the last three months than in any quarter since the start of 2016. Overall, this means that over 4.7 million switchers have taken advantage of the switch guarantee since its inception, with an increase of 1% seen over the last year.

What is the switch guarantee?

The Current Account Switch Service was first introduced in 2013 to help make it easier for people to switch to a different current account. Its switch guarantee promises customers that their account switch won't take more than seven working days and that any payments taken from or transferred into the old account at a later date will make their way across, too. And in the unlikely event that something does go wrong, the Service would guarantee that you wouldn't be out of pocket.

Note that this guarantee only applies to those who close their old account. Those wanting to open a new current account without closing their old one and switching over their direct debits etc. are not covered by the switch guarantee.

As most banks are now using this Service, if you've made a complete account switch in the last few years then you've almost certainly made use of it yourself. Their latest figures, which look at the first three months of 2018, show that 99.2% of switches completed within the seven-working-day timescale, with 94% of surveyed customers over the last three years satisfied with the process and over 49.2 million payments successfully redirected.

Time to join in?

Their data from the third quarter of 2017 shows that among the banks that are taking part, Halifax and Nationwide were the big 'winners', with net additions of 29,208 and 26,003 accounts respectively (minus those that switched away from them). A glance at the current account charts could explain why, as Halifax and Nationwide not only take up competitive places in the best high interest current account chart, but currently sit in first and second place among the top free bank accounts.

So, if you feel you're not getting much from your bank account or are having to contend with high fees, why not have a look at our bank account charts? The switch guarantee should make the transition easy and painless.

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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