One month on: first direct remains most popular with consumers as interest in current account switching climbs 39%

New data from Uswitch.comshows that, one month on from the launch of the Current Account Switch Service, consumers have already started to respond to the advertising blitz from banks. Visits to the uSwitch.com current account pages rose 39% in the first month of the new service, with first direct, Halifax and Smile attracting the most interest.

Michael Ossei, personal finance expert at Uswitch.com, comments: “While it is still too early to tell what switching levels will be over the longer term, the new seven day service has got off to a promising start. The jump in traffic that we’ve seen in the first month shows that switching is back on the agenda for customers keen to seek out a better deal.

“The renewed consumer interest in current accounts is great news for competition. Banks now have to work harder to both attract new customers and keep their existing ones, which should mean better value for money and better customer service.  We are also beginning to see banks tying in deals on their other products, such as mortgages or savings accounts, to encourage more consumers to switch.

“It’s not surprising to see the first direct 1st Account getting the most hits so far. As well as offering the largest cash incentive, it came top in the Uswitch Current Account Awards with customers praising its exceptional service and value for money. Additionally, as a web-based business, first direct is in a good position to take advantage of the digital lifestyles of the people using our site. This may also be a contributing factor behind the increased interest in Smile.

“Halifax’s Reward Current Account has understandably attracted some interest, due to the monthly £5 cash reward for customers paying in £750 a month. However, Nationwide’s FlexDirect Account is also proving popular with switchers, especially those in credit who have been swayed by the impressive 5% interest rate on balances up to £2,500 – far higher than most savings accounts. Santander’s 123 account, which pays 3% on anything over £3,000, also appears to be winning over customers, possibly as a result of its aggressive advertising campaign.

“However, it’s important that consumers take their time before making the move, reading the small print and checking that the account suits their needs. There are some great deals available and, while benefits such as cash incentives can seem very attractive, factors such as interest on balances could prove to be more valuable over the long term.”

Top 5 Current Accounts

FOR MORE INFORMATION

Charlotte Nunes

Phone: 020 7148 4664

Email: charlotte.nunes@uswitch.com

Twitter: @uswitchPR

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