The Current Account Switching Service recorded a 38.5 per cent increase in bank account switches between January and June compared to the same period in 2025. Major banks competed for customers by offering cash bonuses, driving a massive surge in consumer switching across the country.
A total of 288,999 switches took place across 53 participating banks and building societies between April and June. June was the busiest month with 116,345 switches, followed by April with 89,908 and May with 82,746.
Nationwide recorded the largest net gain among all institutions, attracting 58,448 customers, double that of its nearest rival Lloyds, which saw 24,349. Customers were attracted to Britain's biggest building society by a £175 switching bonus and the prospect of a potential £100 Fairer Share payment in the future.
Lloyds previously offered switching cash bonuses of up to £500 for select accounts. Monzo acquired 21,894 net customers despite bucking the trend by not offering traditional cash switching incentives.
Monzo operates through a mobile app and offers features like instant spending alerts, budgeting pots and free card use abroad.
Customer Losses and Account Migrations
Halifax suffered the largest net customer loss, losing 21,869 customers. The 173-year-old brand is undergoing a major structural transition as it is phased out and its customer base and accounts migrate to Lloyds.
Barclays lost a net 20,780 customers, while NatWest and Chase UK also lost a net number of customers. Barclays and NatWest both offer £200 switching bonuses as competition remains intense, while Chase UK is not currently offering a cash switching incentive.
Expert Insights on Incentives
Andrew Hagger, a personal finance expert from Moneycomms, suggested Monzo's referral incentives could be driving its growth. Referral incentives reward existing customers with payouts between £20 and £100 when a referred customer opens a qualifying account and meets activity requirements.
Hagger said: "It's certainly started to ramp up its advertising and marketing - it also offers referral incentives for existing Monzo customers, so that could be driving some new business."
Hagger added: "The Nationwide and Lloyds switching figures are fuelled by switching incentives (or cash bribes) being offered - people see bank switching as an easy way to earn an extra £150- £200 to help them boost their bank balance to help with cost of living pressures."
He added: "It's certainly worth switching at least once - if you move to Nationwide for example, you may wish to stick with them as they have been paying an annual fairer share payment of £100 for the last few years (no guarantee this will continue for future years)."
Current Account Switch Deals
When opening a bank account and using the Current Account Switching Service, customers can receive free cash bonuses. Banks currently offering switching deals include:
- HSBC is offering £220 when you switch to an HSBC Bank Account
- Santander is offering £180
- First Direct is offering £175
- Nationwide is offering £175
- Barclays is offering £200
- NatWest is offering £200
- Co-op is offering £125 upfront, plus £25 per month for three months
