Bank current account switching levels dipped in first three months of 2021

THE number of current account customers ditching and switching their bank fell in the first three months of 2021.

A total of 137,976 switches took place in the first quarter of 2021, according to figures from the Current Account Switch Service (Cass).

This marked a 51,297 fall compared with the final quarter of 2020 (189,273) – a time when social distancing measures were relaxed for many people and current account providers started reintroducing switching incentives to the market, Cass said.

It added that switches dipped in January and February this year, before picking up in March.

Cass was introduced in 2013 to take the hassle out of switching current accounts.

Switches can now be made in seven working days, compared with up to 30 previously.

Payments are automatically moved over to the new account.

More than 7.2 million bank switches have been completed since launch, Cass revealed.

It said the latest quarterly switching total was nearly identical to total switches completed in the third quarter of 2020 (136,575) when similar social distancing measurers were in place for many people.

Across Cass’s 50 participants, Lloyds Bank had the largest net switching gain in the last quarter of 2020 (29,556), followed by Starling Bank (15,960), Natwest (9,003), Clydesdale Bank (8,584) and Monzo (6,765).

TSB, meanwhile, made a net loss of more than 20,000 switches.

Santander made a net loss of more than 18,000. Halifax made a net loss over 11,000 switches.