According to new research from TSB, the number one driver that influenced Brits to switch bank accounts in the past year was better benefits offered at another bank, such as higher interest rates (33%).
Switchers chasing financial benefits
The research also found that of those that switched bank accounts, over a quarter (27%) said they had no choice but to completely switch to qualify for the better benefits offered by the new bank. Over a third (36%) of women said this was the main reason they switched bank accounts, compared to only 21% of men.
People who have used the seven day switching service, have on average, switched bank accounts twice already. What's more, almost one-in-five (17%) said they will continue to move banks in the future based on which bank they think offers the best account benefits.
But satisfaction is key
Over a quarter (26%) of people said a key driver that influenced their decision to switch bank accounts was their dissatisfaction with their old bank. Those that switched bank accounts using the seven day switching service said if they are dissatisfied with their new bank they will look for another bank to switch to (21%).
To switch or not to switch?
Since the seven-day, Current Account Switch Service was launched last year (16 September 2013), a quarter (25%) of those surveyed opened a new bank account. Of those that opened a new bank account, nearly a third (31%) opened their account using the seven day switching service, exactly one third (33%) manually switched themselves and almost two-fifths (38%) opened a new bank account with a different bank but didn't close their old bank account.
Interestingly, the research also identified clear generational differences in how people went about opening their new bank account:
- 18-24 years switched manually themselves (56%).
- 25-34 years and 35-44 years used the seven day switching service (39% and 41%, respectively).
- Those over 45 years opened an account with a different bank but didn't close their old account (43%).
Andy Piggott, Head of Current Accounts, said: "There is no denying that account benefits play an important part for people choosing a new bank account. However, it's also important that people are satisfied with the overall experience the Bank is offering them.
"This is why we don't insist people switch to us in order to receive the benefits of our Classic Plus account. Instead, customers can enjoy the benefits of our account and experience what TSB stands for. We will then help them to use the switching service when they are ready."
The TSB Classic Plus account offers 5% credit interest without all that usual funny stuff. Find out more about the TSB Classic Plus account here .
Key features of Classic Plus:
- 5% AER variable interest on balances up to £2,000.
- No introductory offer period.
- Available to existing and new customers.
- Minimum monthly deposit of £500.
- No monthly fee.
- Register for internet banking, paperless statements and correspondence.
- Transact in branch, online or over the telephone.
- Switching service available.
Notes to editors
From 1st September to 2nd September 2014, Springboard UK conducted an online survey among 2,015 randomly selected British adults aged 18+ who are Springboard UK panelists. The margin of error-which measures sampling variability-is +/- 2.2, 19 times out of 20. The results have been statistically weighted according to the most current social grade, age, gender and region data to ensure samples representative of the entire adult population of Great Britain. Discrepancies in or between totals are due to rounding
TSB Bank plc is a British bank which provides customers with a range of services and products such as current accounts, savings, credit cards, loans, mortgages and insurance.
With a presence on 631 high streets right across Britain, TSB Bank plc has approximately 8,000 staff looking after £22 billion on behalf of its 4.5 million customers. Our purpose is to support safe and sustainable economic growth in the surrounding communities, serving only individuals and local business customers.
For further information about TSB Bank plc, please visit our website www.tsb.co.uk.