Thousands of customers are leaving some of the UK’s biggest banks, with new data revealing sharp declines for Santander, Barclays and Halifax.
Figures from the Current Account Switch Service show all three lenders lost thousands of account holders in the latest quarter, as customers chased cash incentives and better deals elsewhere.
Santander saw the biggest loss of customers this year, with 23,000 people closing their accounts, followed by Barclays, which lost 18,000, and Halifax, down by 15,000.
The exodus comes as banks battle to attract new customers with cash switching offers worth between £175 and £200, tempting savers to move their money for quick rewards.
All moves were made through the Current Account Switch Service, which automatically transfers payments, Direct Debits and standing orders to a new account within seven working days.
Nationwide came out on top, gaining 54,347 new customers between April and June 2025. Its success has been linked to a simple £200 switching bonus and its Fairer Share scheme, which paid £100 loyalty rewards to more than four million members.
Financial experts have identified cash bonuses as the primary catalyst behind these substantial customer movements, though digital challenger Monzo has adopted an alternative strategy.
“The latest current account figures show Nationwide remains the dominant player in the switching market,” commented Alastair Douglas, TotallyMoney CEO, noting that the building society’s combination of switching incentives and loyalty rewards appears particularly effective.
Rather than offering traditional switching bonuses, Monzo has implemented a referral scheme paying existing customers up to £50 for each friend they bring to the platform.
Santander saw the biggest loss of customers this year, with 23,000 people closing their accounts
|
GETTY“Monzo is leading the way for the new banks – its refer a friend deal seems to be working and helping it to outperform rivals Starling and Chase,” observed Andrew Hagger, Personal Finance Expert at Moneycomms.co.uk.
The Current Account Switch Service also reached a new milestone, recording its 12.1 millionth switch since launching twelve years ago.
The service processed 265,083 switches during the third quarter of 2025, marking the busiest quarter of the year, with July alone accounting for 111,244 transfers.
Other institutions posting gains included Co-operative Bank with 9,175 new customers, Monzo adding 8,246, and HSBC attracting 8,219 account holders.
LATEST DEVELOPMENTS:
Monzo is leading the way for the new banks
|
MONZOSix major banks are currently offering cash incentives to attract new customers before Christmas, with bonuses spanning from £175 to £200.
Barclays leads with a £200 bonus alongside an Apple TV+ subscription and cashback rewards, though their Blue Rewards account carries a £5 monthly charge.
High earners exceeding £75,000 annually or those holding £100,000 in savings can secure £400.
TSB combines a £150 switching bonus with up to £30 in cashback over three months
|
PAFirst Direct provides £175 plus a £250 interest-free overdraft and access to a seven per cent savings account.
Lloyds matches the £200 offer but charges monthly fees of £5 or £15 depending on the account type.
Nationwide’s £175 bonus arrives within ten days of meeting requirements, whilst NatWest offers £175 with potential monthly cashback earnings.
TSB combines a £150 switching bonus with up to £30 in cashback over three months.