Introductory bonuses drive 57% of current account switches

15 May 2017

Introductory offers are the main reason consumers switch their current account to a new provider, reveal the results of a Moneywise poll of 3,000 readers.

Some 57% of those asked say a compelling introductory offer from another bank is what makes them most likely to switch.

Other reasons for moving accounts include receiving bad service from their current bank – with 11% citing this as a reason. Being overcharged by an existing provider (7% of respondents), a recommendation from a friend (4%) and security concerns (2%) were also drivers for people to switch accounts.

Just 17% of respondents say they have switched current account provider on more than one occasion. A further 36% of people have moved just once while the remaining 47% have never switched their current account.

Of those who have already switched providers, 70% of Moneywise readers described the process as ‘seamless’. A further 24% say they faced a few teething issues but the switch was ultimately worth it. Just 1% of respondents described their switch as a ‘disaster’.

These results come from a poll of Moneywise readers who took part in the voting for the Customer Service Awards 2017, which secured nearly 50,000 entries in total.

Which provider offers the best switching bonus?

The top cash bonus currently on the market is for the Co-operative Bank Current Account, which offers £110 to switchers. Elsewhere, First Direct will pay you £100 cash if you switch to one of its current accounts. It will also pay you another £100 if you are unhappy with the service and leave after the first six months.

Meanwhile, Halifax offers anyone who switches to its Reward Current Account or Ultimate Reward Account a £75 bonus while M&S Bank gives a £125 M&S voucher to new current account switchers, plus a £5 voucher each month for a year. Each of these accounts has minimum pay-ins and other restrictions. Read Moneywise’s guide to the week’s best current accounts for full details.

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