Revealed: the banks and building societies thousands are switching to

Nationwide gained the most current-account customers throughout 2022, according to the latest data from Pay UK. HSBC and Starling also saw big net gains over the course of the past year.

The banks that saw the biggest net losses were TSB, Barclays and Halifax, with thousands more customers leaving them than joining.

So far this year, there's been a huge surge in the number of people switching current accounts. The latest figures show 341,075 customers used the Current Account Switch Service to ditch their old bank for a new provider between January and March 2023 – that's an increase of more than 70% compared to the same period in 2022.

Here, Which? reveals the banks and building societies people moved to and away from – both between October and December 2022, as well as across the whole of the past year.

Which banks and building societies are we switching to?

The most recent data from Pay UK shows the number of full bank account switches between 1 October and 31 December 2022.

This graph shows how customer numbers changed over this three-month period. Click each tab to see the 'gains' (the total number of customers that switched to each provider), the 'losses' (how many customers left each provider) and the overall 'net gains' (whether a provider had more or fewer customers after the gains and losses are combined). 

Nationwide took the lion's share of switchers during the fourth quarter of last year, with net gains of 111,941 people switching to its current accounts. Its popularity was likely down to its attractive £200 switching bonus, which was launched on 3 October 2022. 

The same goes for HSBC. Between 7 November and 22 December 2022, the bank offered £200 to anyone switching to its Advance account, with a similar deal launched this month. Data also includes numbers from sister bank First Direct, and the Which? Recommended Provider's long-running offer of £175 likely helped HSBC attract 59,569 switchers. However, because more people moved away from the bank than joined, HSBC actually had a net loss of -1,518 current-account customers at the end of last year.

Other providers with positive net gains include NatWest (5,646), Starling (1,810) and Triodos (151).

At the other end of the scale, Santander saw thousands of customers switching away. It had the largest net losses and ended the final quarter of 2022 on -35,046. Barclays (-22,945) and Halifax (-20,287) also saw significant losses. 

• Find out more: best and worst banks

Which were the most popular banks of 2022?

We've knitted together the Pay UK data from all four quarters of 2022, to give an overall view of which banks and building societies proved to be most and least popular. 

This graph shows overall switching figures for 2022 – each tab shows providers' gains, losses and net gains.

Nationwide was far and away the most popular bank to switch to in 2022, with a net gain of 133,290 new current-account customers. This is likely down to the provider's market-leading switching bonus, which was offered throughout the year and was raised to £200 in the autumn. 

HSBC, NatWest and Lloyds were the only other high street banks to attract more new customers than lose them in 2022. The providers saw net gains of 34,824 (HSBC), 17,370 (NatWest) and 2,743 (Lloyds). All three had cash switching offers throughout the year.

Challenger banks continued to prove a popular choice for switchers – Starling, a Which? Recommended Provider, had a net gain of 32,648, while Monzo had 11,739. Ethical bank Triodos also saw a positive net gain of 1,170.

Barclays (-68,863) and TSB (-46,201) saw the biggest net losses in 2022 – both ranked near the bottom in our latest customer survey. Halifax also saw a total net loss of -37,472 – that's despite a net gain in 2021 of 10,157 new current-account customers.

What switching incentives are banks offering? 

HSBC: £200 cash bonus

The provider is offering a £200 bonus for moving to its Advance current account, which comes with an optional arranged overdraft (worth a minimum of £1,000) and a linked savings account offering 5% AER. 

To open the account, you’ll need to have at least two direct debits or standing orders set up within 30 days, and pay in £1,500 within the first 60 days.

This offer is only open to new customers and you can’t have held a HSBC current account or opened a new First Direct current account since 1 January 2020.

NatWest and Royal Bank of Scotland: £200 and other rewards

Switching £200 to either the NatWest or RBS Select, Reward, Premier Select or Premier Reward accounts could bag you a £200 bonus.

Note, however, that while Select current accounts are fee-free, Reward accounts come with a £2 monthly fee in exchange for perks, such as the ability to earn up to £5 a month (or £60 a year) in rewards.

Premier bank accounts have much stricter eligibility criteria. To open one of these, you'll need to earn at least £100,000 a year, have a mortgage of at least £500,000 with NatWest or RBS, or have at least £100,000 in savings and investments with either provider.

Whatever account you go for, you'll need to deposit at least £1,250 and log in to your mobile banking app within 60 days to get the bonus.

First Direct: £175 bonus

HSBC's sister bank – a Which? Recommended Provider – is trying to entice new customers to its 1st Account with a £175 switching bonus. To get the free cash, you'll need to deposit £1,000 within three months of opening the current account. 

The current account also offers a £250 interest-free overdraft (subject to status), incurs no monthly fees and has a regular saver account that pays 7% AER, fixed for 12 months.

How to switch your current account

The deals above are only offered to those who switch to their new account using the Current Account Switch Service (CASS). 

Regardless of whether you want to switch to get a bonus or not, the CASS can be worth using – many banks are signed up to the service and it can take the headache out of the process.

CASS is free to use, and means the switch to your new account will be largely automated, moving your incoming and outgoing payments along with it. Your new bank will handle moving these payments and correct any problems that arise as part of the switching process. 

You’ll also be protected by the Current Account Switch Guarantee if you run into any problems. 

• Find out more: how to switch your bank account