Nationwide dominates bank switching battle with help of cash bonuses and Fairer Share lure
- Nationwide hoovered up 81,584 new customers in last three months of 2024
Nationwide is still winning the current account switching war driven by generous cash bribes to move, according to new figures.
More than 1million bank account switches took place in the past 12 months, with 222,805 happening in the first three months of the year, figures from the Current Account Switch Service show.
Britain's biggest building society came out top with the highest net switching gains of 51,254 between October and December 2024, according to the bank-specific data, which is three months in arrears.
It was followed closely by Lloyds Bank, which saw 50,061 net switchers between October and December 2024.
This is the second quarter in a row that Nationwide had the highest net switching gains. Between July and September 2024 Nationwide saw net switching gains of 22,622.
Switching banks was previously a fiddly process that involved customers having to change direct debits and other payments manually and and telling their employer their new details.
Cass, which launched in 2013, automatically does those processes, allowing customers to switch their current accounts online, with a promise of compensate if anything goes wrong.
Switching wars: Nationwide had the highest net switching gains between October and December 2024, followed closely by Lloyds
Any payments that are accidentally paid into your old account will be redirected and the switching process should be completed within seven days.
The switching figures, which mark the second consecutive year of over a million switches, coincide with turbulent economic conditions.
John Dentry of Pay.UK, which operates Cass, said: 'The past quarter has provided a turbulent economic backdrop, no doubt encouraging increasingly money-conscious consumers to take action.'
The figures also coincide with generous bank switching bonuses being paid out by both Nationwide and Lloyds.
Between October and December 2024, Lloyds was paying a £200 cash bonus to new current account customers while Nationwide was paying £175 until 31 March 2025.
Nationwide also dished out a highly anticipated £100 fairer share payment last summer and has hinted that it will repeat the payment this year.
Share this article
This would also have appealed to new current account customers hoping to nab any £100 bonus announced this year along with the promise of a £175 switching bonus.
Andrew Hagger, director of personal finance website MoneyComms said: 'No doubt the Fairer Share payments from Nationwide Building Society are an added draw and a possible reason to stick with the society going forward.
'The Lloyds Bank figures are 79,004 gains and 28,943 switches away (net gain 50,061 switchers). If the bank had paid £200 for each of the 79,004 gains it would have shelled out £15.8million to attract those new customers.'
Mr Hagger said the data 'highlights the power of a cash incentive when it comes to persuading customers to switch banks.
Switching incentives are an expensive way for banks to acquire new customers, particularly when some account holders will simply up sticks and leave within a few months if another bank is offering a cash bonus.
The data shows cumulative switching data for five years to 31 Dec 24 and reveals that Nationwide and NatWest have been by far the most successful when it comes to attracting new customers while Barclays is at the bottom of the switching league tables.
Between October and December 2024, Barclays had net losses of 37,128, gaining just 3,759 new customers while losing 40,887 customers.
Which banks offer switching deals now?
Switching banks can be a good way to earn a bit of cash, as the latest switching figures show.
Currently, only two banks are offering switching incentives: First Direct is offering £175 to new 1st Account customers.
NatWest is offering £150 to those who switch to its Reward current account, which comes with a £2 monthly fee and offers perks such as 1 per cent cashback on selected retailers.
SAVE MONEY, MAKE MONEY
Fee-free Isa investing
.JPG)
.JPG)
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.
Our pick of the best ISAs
Best savings rates
Savings accounts finder
Current accounts finder
