The banks that most people are switching to revealed – how to find the right one for you

HALIFAX has been revealed as the most popular bank for new customers, with 62,700 people switching to it in the first three months of the year.

While Barclays is off to a poor start, with 25,797 customers flocking to other banks in the first quarter, according to data from BACS.  This follows a shocking 2017 where the bank gained 30,978 customers, but lost a whopping 88,321, leading to a net loss of 57,343.

The popularity contest was decided by comparing the amount of new sign-ups with the number of customers which have jumped ship.

Looking at the 2017 data, the banks which attracted most new customers were those who offered the biggest switching bonuses or the best rates.

This trend has continued into 2018 as we all keep searching for a bank that will give us the best incentives to move.

BACS said: “In Q4 2017, the two biggest gainers were Clydesdale and Nationwide, potentially as a result of highly competitive switch incentives offered by both. Clydesdale offered £250 to new customers, and Nationwide offered £100 for the new switcher and a friend.

“Other brands seeing net gains during the final three months of last year included Halifax, HSBC, Tesco and TSB, all of which offered various competitive propositions, including switching incentives and reward accounts.”

Unsurprisingly, TSB has had a far less successful 2018, possibly as a result of the technological issues the bank faced earlier this year. In the first three months of the year the bank lost 16,435 customers. Other banks that fared poorly included Lloyds Bank, the Co-operative and Clydesdale Bank.

The rise of the challenger banks

One surprising new addition to the top five banks people are switching to is Starling Bank. This is one of many new mobile banks that allow you to do things like budget on the go and understand your spending better. Some of them, like Monzo, also have fantastic rates for spending money abroad.

Before you switch to a new bank, make sure it has a banking licence from the Prudential Regulation Authority (PRA), which means it’s properly regulated and safe to use.

Mythbuster – you CAN have two current accounts

Many people think you can’t have more than one current account - but this is a myth. You may be limited to just one current account per provider (unless you have a second joint account) but you can open as many different accounts with different banks as you like. With savings rates so low at the moment, it often makes more sense to leave the money in your account, as many banks will pay as much as 5 per cent on balances of up to £5,000.

Be warned though, many banks will only give you the interest rates if you pay in a set amount each month and have at least two direct debits, so you’ll have to juggle things carefully to benefit.

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