NatWest scoops up 127,917 new customers in three months with £200 switching deal as 1.4MILLION people shift their current accounts
- NatWest gained 99,695 more switchers than it lost between April and June 2023
- HSBC UK, RBS and Ulster Bank also had strong gains in the same period
- But Santander lost more customers to other banks than any other provider
NatWest and HSBC UK are the two banks signing up the most customers – all due to generous cash switching offers.
NatWest gained 99,695 more customers than it lost between 1 April and 31 June of this year, new data from the Current Account Switch Service (CASS) – which is three months in arrears – shows.
During these three months, NatWest ran a switching deal of £200 – its highest ever incentive – which savings experts say was responsible for reeling in so many switching customers.
NatWest’s net gains – the difference between the number of customers gained and lost – rocketed by 118 per cent to 99,695 in three months from 45,651 in the first three months of this year.
NatWest hoovered up 127,917 new customers in three months between April and June this year through the Current Account Switch Service
NatWest was offering the £200 within a speedy seven days days, which clearly proved popular.
Three other major banks, HSBC UK, RBS and Ulster Bank also gained more customers than they lost through switches between April and March this year.
HSBC UK, including its sister bank First Direct, gained 25,769 more customer than it lost, while RBS had 16,017 net switchers. Ulster Bank gained 2,330 more customers than it lost. RBS and Ulster Bank are part of the NatWest group.
Andrew Hagger, founder of personal finance website MoneyComms, says: ‘The level of switching activity continues to be driven primarily by the cash switch offers from the high street banks.
‘NatWest launched its highest-ever incentive of £200 on 14 February with a promise of the switch money being paid within seven days of the switch being completed.
‘HSBC UK did well on the back of similar offers running in the same three-month window. First Direct launched a £175 switching deal and HSBC’s £200 switching deal launched on 17 April.
‘Once these switching deals end some customers will switch away again in search of the next free cash handout.’
On the other hand, Santander lost 32,560 more customers than they gained, followed by Halifax, Barclays and Nationwide Building Society.
Hagger says: ‘Santander probably suffered from its switching deal ending as it had a £200 offer running from 23 January to 7 February.
| Bank | Gains | Losses | Net gains |
|---|---|---|---|
| Bank of Scotland | 2,392 | 4,274 | -1,882 |
| Barclays | 5,291 | 26,889 | -21,598 |
| Halifax | 22,488 | 44,502 | -22,014 |
| HSBC | 68,736 | 42,967 | 25,769 |
| Lloyds Bank | 28,107 | 30,925 | -2,818 |
| Monzo Bank | 10,433 | 19,513 | -9,080 |
| Nationwide | 10,042 | 30,636 | -20,594 |
| NatWest | 127,917 | 28,222 | 99,695 |
| RBS | 25,888 | 9,871 | 16,017 |
| Santander | 5,860 | 38,420 | -32,560 |
| Starling Bank | 10,192 | 13,123 | -2,931 |
| TSB | 1,893 | 14,980 | -13,087 |
| Ulster Bank | 3,791 | 1,461 | 2,330 |
| Virgin Money | 2,051 | 8,213 | -6,162 |
| Source: CASS | |||
The latest CASS figures suggest switching current account continues to be rampant at the moment as cash-strapped customers look for way to make money.
There has been 1.4million current account switches between October 2022 and September 2023, a 63 per cent increase compared to the same period in 2022.
While 344,195 switches took place in the three months between 1 July and 30 September 2023, an increase of 55 per cent compared to the same period in 2022.
Hagger says: ‘The double whammy of increasingly tempting lucrative cash offers of £200 plus and people desperately looking for ways to make more cash to survive the cost of living and mortgage rate squeeze is driving more people to switch and make some easy cash for very little effort.’
NatWest pulled its £200 switching deal on 11 September 2023.
