Almost one million switch current accounts in 2023 as interest rate rises drive 'bumper year'
New figures released today to mark the tenth anniversary of the Current Account Switch Service (Cass) show 928,358 switches have been recorded from the start of 2023 to September 5 this year.
That compares with 986,956 switches across the whole of 2022.
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Hide AdThe Cass system was introduced in 2013 to make it easier for current account holders to “ditch and switch" to new providers.
More than 9.6 million switches have been counted since it launched.
The free-to-use service can be used by people, small businesses and small charities. It takes the hassle out of switching and there is also a guarantee that acts as a safety net if anything goes wrong.
There have recently been some signs of a jump in people ditching and switching.
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Hide AdAccording to Cass, the most popular date it has seen so far for switching was November 8 2022, when 13,566 switches were counted.
In the rising interest rate environment, some switchers may be attracted by decent rates on savings accounts linked to the current account.
Some current account providers have also been offering as much as £200 to switch in recent months, while some accounts also offer cashback for particular types of spending, which may help people’s budgets to stretch further in the cost-of-living squeeze.
John Dentry, product owner, Pay.UK, the owner and operator of Cass, said that the number of providers participating in the scheme has increased over the past decade. The service covers 99 per cent of UK current accounts across 50 banks and building societies.
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Hide AdHe said: “There are a variety of offerings that are out there. Not just with the participating brands themselves, but the products that they offer as well.”
Mr Dentry, who was previously involved in work to introduce the service, said: “It’s been quite a great journey for me to watch it all unfold, not only the service evolve itself but also those that operate within the space of Cass.”
Asked about the recent growing appetite for ditching and switching, he said: “I think there’s definitely a variety of reasons, one of the key ones that we see is the cash incentives that are out in the market.
“We’ve seen not only an increase in the cash amount… but alongside that we’ve seen more organisations offer cash incentives as well.”
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Hide AdAs well as rising interest rates, he also highlighted the value of good customer service for current account holders, whether that is provided digitally, on the phone or face-to-face in a branch.
Peter Tyler, director of personal banking at banking and finance industry trade association UK Finance, said: “The UK current account market is highly competitive and banks and building societies have a range of accounts available for customers to choose from.
“Cass has made it a lot easier for customers to switch current accounts securely and with confidence.”