Best and worst banks: NatWest the big winner as customers ditch Santander

Record numbers of Brits finished 2023 by switching their bank account.

That’s according to the latest figures from the Current Account Switch Service, which found that between October and December last year, more than 433,000 people opted to move their accounts, a record high for switching.

In November alone more than 162,000 switches took place, the highest number on record since the service launched over a decade ago.

Note that the CASS figures only cover switches where the person's old bank account is closed. 'Partial switches', where the customer chooses to keep their old account as well are not included, so the true total number of switchers will be higher.

While it's interesting to see that so many switched in the final quarter of the year, the really useful stats can be found by looking at the specific banks and building societies that gained and lost the most customers.

This data is provided by Pay UK, the retail payments authority.

As it takes a while to pull these together, the latest stats available are for the third quarter of 2023, running from 1 July to 30 September.

Here’s what these stats reveal, starting with the biggest winners.

The banks we are all switching to

The big winner, by a distance, was NatWest. Over the quarter it brought in a net 59,158 customers, an enormous increase. 

Remember that’s net growth too ‒ it actually gained almost 95,000 new customers, albeit this was offset by the loss of a little over 35,000. 

NatWest has consistently performed well in these switching studies of late, and its use of switching incentives is a big reason why.

During this period, it was offering new customers a £200 welcome bonus, the largest such bonus around, and clearly plenty of people were happy to take advantage.

To be fair to NatWest, that slice of cold, hard cash has not been the only attraction to banking with the brand.

Its Reward account is a decent option if you are looking to get a little cashback based on the direct debits leaving the account, while there’s further cashback on offer when you spend with select retail partners.

For more on how it compares, check out our run-through of the best bank accounts for cashback.

The second biggest winner over the quarter was HSBC, which gained a net 25,037 new customers. 

Again a beefy switching bonus was the big attraction here, with switchers offered £200.

As with NatWest, that offer has since been withdrawn, leaving the HSBC accounts looking less enticing as a result.

The last big winner here was TSB, which managed to bring in a net 15,754 new customers over the quarter. 

Again, TSB has done well from offering a cash switching bonus, and it’s one with a difference. You get £125 up front, with the potential to bag an extra £10 a month over the next six months.

What’s more, it’s a switching bonus that’s still active right now, as we highlight in our run-through of the best bank accounts for switching bonuses.

Here’s how they shape up.

The worst-performing banks

With only a handful of banks gaining customers over the quarter, the vast majority have seen a drop.

The biggest fall of all was seen at Santander, which lost a net 27,604 customers.

Santander has been one of the victims of other brands launching generous switching bonuses, since its current accounts are actually pretty good.

Indeed, the Santander Edge is somewhat unique in that you can earn cashback both on direct debits and on certain debit card spending. 

Barclays was also a big loser, with a net 24,103 account holders heading off for a new bank account provider, while Nationwide is another big loser. 

While these providers offer decent looking accounts, the reality is that if you’re looking for a new provider, it’s difficult to look beyond those who are offering cash welcome bonuses. 

Here’s how some of the worst-performing banks and building societies performed.

What matters to us?

It's clear that switching incentives continue to play a key role in the switching merry-go-round.

For example, we've seen banks go from near the top of the table all the way to the bottom after withdrawing a juicy offer.

Similarly, a juicy switching bonus often drives a bank up the charts.

Regardless, the common themes among the banks that consistently appear at the top of these switching tables every year are excellent account features and customer service.

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