Halifax added the most new customers under the current account switch service in Q3 2014, according to the latest figures from the Payments Council. The bank lost 25,254 current accounts but gained 78,878 from 1 July to 30 September last year, resulting in a net increase of 53,624. Halifax was followed by Santander, with a net gain of 43,312 customers, while Nationwide benefitted from 6,608 account switches. And it may have been a turbulent week for Tesco’s retail division, but there was good news for Tesco Bank, which reported a boost of 2,467 customers.

All of the other banks which submitted figures for the quarter reported net losses, with the biggest dip recorded at Barclays, which saw 31,331 customers elect to switch provider. NatWest witnessed 21,743 departures, while HSBC and Lloyds lost 10,647 and 10,402 current accounts respectively.

Overall, 1.14 million current account switches were recorded in the last 12-month period, a rise of 7 per cent. By the end of this March, 71 per cent of people in the UK were aware of the current account switch service, up from 58 per cent when it was launched in September 2013. Customer confidence in the new facility had also increased, the Payments Council said, up from 56 per cent to 62 per cent.

David Mann, head of money at uSwitch.com, argued that the new service had seen the current account market “heat up” over the past few months. “As well as switching incentives of up to £150, current accounts are becoming increasingly attractive thanks to high interest rates and monthly cash rewards,” he commented.

“This growing confidence, along with small sprouts of competition, means that we are now seeing people starting to vote with their feet when they’re unhappy. Hopefully, this behaviour will lead to a virtuous circle, where banks have to stay on their toes and continue to offer better deals. Then the seven-day switch can become the real game changer we were all hoping for.”

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