14% increase in bank account switching
The Current Account Switch Service has seen over 600,000 bank account switches in past six months
There was a 14% year-on-year increase in bank account switching in the period from the start of October 2013 to the end of March 2014.
The results published by the Payments Council, revealed that there had been over 600,000 switches using the new Current Account Switch Service scheme, which helps customers to change banks within seven working days.
Increased awareness of Current Account Switch Service
Since the start of the year, the Payments Council has aimed to increase awareness of the Current Account Switch Service, in order to help stimulate competition among banks and choice for consumers.
More than two-thirds of people (67%) in the UK are now aware of the Current Account Switch Service, which is up from 59% at the end of 2013.
Customer confidence in the service is similarly high, increasing from 58% to 65% over the same time period.
High awareness and confidence in the service is believed to have helped to contribute to an increase in switching levels.
‘Competition and choice for customers’
In the six-month period to the end of March 2014, there were 609,300 switches. During the same time period one year previous there were 532,500 switches.
Gary Hocking, managing director of the Payments Council, said: “By making the Current Account Switch Service quick, hassle-free and removing the fear factor we’ve taken away the barriers customers told us they had when it came to switching.
“There’s also been a noticeable surge of advertising activity from current account providers big and small, suggesting that the new service is helping foster competition and choice for customers.”
How does current account switching work?
Customers seeking to switch bank accounts should have their current bank details ready and up-to-date.
Savings and ISAs cannot be switched using the 7-day switching scheme, and joint accounts cannot be switched to a sole account.
Once you’ve selected a date, your new bank will transfer over your Direct Debits and standing orders.
The Current Account Switch Service will also ensure that you get all your payments such as wages into your new account.
The Current Account Switch Service also works online, so customers can compare banks and carry out the switching online.