Halifax edges ahead of Santander wins in present account battle
Halifax, which pays consumers £5 a thirty day period, has gained a lot more current account switchers than any other financial institution beating rival Santander, market figures show 
 

 
 &#thirteen 
 Photo: Alamy 
 &#thirteen
Halifax has surpassed Santander as the favorite lender for recent accounts switchers.
The financial institution, part of Lloyds Banking Team, attained a internet obtain of much more than 53,000 clients in the 3rd quarter of 2014 (July to September), according to figures unveiled nowadays by the Payments Council, the entire body responsible for the Existing Account Change Provider.
Santander falls just behind Halifax with a web acquire of a 43,312.
The two rival banking institutions have battled it out for poll place since the switching support was very first launched in September 2013. Halifax arrived best for internet client gains in the fourth quarter of 2013 and the very first quarter of 2014, although Santander triumphed in the second quarter of 2014.
Halifax delivers £125 to these who change, and also gives Reward Current Account clients £5 a thirty day period in fascination. Customers have to spend in a least of £750 a thirty day period and established up two immediate debits.
Nick Younger, head of Halifax current accounts, said: “We are delighted that Halifax remains these kinds of a common decision for buyers hunting for a satisfying existing account. Being leading in a few out of the four quarters of the very first yr of the Existing Account Swap Support is evidence of the additional benefit we produce to our clients.”
Santander’s 123 account presents 3pc desire on balances amongst £3,000 and £20,000, as nicely as up to 3pc cashback on household payments, for a monthly fee of £2, and is the primary explanation why men and women swap to the Spanish-owned bank, explained Matt Hall, director of banking at Santander. “The greater part of switchers – far more than 9 out of ten (93pc) – opened Santander’s 123 Current Account,” he mentioned.
• New comparison instrument matches your paying to the recent account that will suit you ideal
Nationwide and Tesco Lender had been the only other companies to acquire a lot more consumers than they lost. Nationwide pays 5pc interest on balances up to £2,500 to those on its FlexDirect account . Tesco Financial institution pays 3pc fascination on balances up to £3,000.
NatWest, Lloyds Lender and Barclays, on the other hand, proceed to drop customers and languish at the bottom of the desk. This is despite Lloyds’ Club recent account paying one particular of the highest costs of interest on the industry, at 4pc for balances among £4,000 and £5,000.
What about buyer support?
Even though the perks are great, neither Santander or Halifax prime the tables on client support. A research by Moneysavingexpert before this 12 months handed that accolade to Very first Immediate, followed by Smile and Nationwide.
Santander was fourth and Halifax was sixth, out of fifteen.
The banks successful and shedding buyers
Resource: Payments Council. The data supplied is for the third total quarter of 2014 (in between July 1 and September 30 2014 and is therefore six months in arrears)
Though the figures for switching have been greater than last calendar year, with a 7pc yr-on-calendar year rise, out of the 1.fourteen million switches made over the earlier 12 months nearly 10pc of these had been carried out with no the switching assure services, since the individual switching wished to maintain their aged account. There are at present around 50 million current account holders in the Uk. The amount of switching is under the peak of one.two million arrived at in 2012 before the provider commenced.
• Which financial institution ought to I switch to?
Kevin Mountford, head of banking at MoneySuperMarket, explained that while personal current account switching had improved, the figures have been not “overpowering”, so financial institutions and developing societies “need to do some work to create revolutionary new merchandise and drum up exhilaration to swap”.