NatWest steals 83,000 new customers from other banks with its £200 switching bonus

NatWest recorded 83,131 new bank account switches in the first three months of the year, according to the Current Account Switching Service.

The banking giant had the largest net gains from bank switching of any bank between January and March 2024, new data that is three months behind shows.

The banking giant gained 60,497 more customers than it lost during this time.

NatWest was followed by RBS, TSB and Lloyds Bank in terms of the largest net foreign exchange gains.

RBS gained 13,210 more customers than it lost, while TSB had net gains of 11,640 and Lloyds posted net gains of 11,076, leaving NatWest well ahead in the eyes of those switching bank accounts.

In February 2024, NatWest was paying a £200 bonus to new customers for switching. The cash bribe was clearly a big draw for many customers and put NatWest’s competitors to shame.

At the time, Lloyds Bank launched a £175 switching incentive through its Club Lloyds account.

Before these deals were launched in February 2024, there were no other cash bonuses available for switching apart from NatWest and Lloyds.

NatWest has withdrawn its £200 switching incentive in April 2024.

In the last three months of 2023, NatWest lost 43,000 more customers than it gained.

The biggest winner of the change battle at the time was Nationwide, which gained a whopping 163,000 more customers than it lost.

This surpassed the previous highest quarterly net gain of 111,941, also from Nationwide, in the last three months of 2022.

Andrew Hagger, founder of website MoneyComms, said: ‘NatWest’s figure is impressive and was boosted by a £200 switching incentive offered from 15 February to 2 April.

‘While it was a good quarter for NatWest, the big question is how many of those customers will stay and how many will leave soon in search of the next cash delivery.’

There are more bank switching bonuses on the market now as banks scramble to secure deposits from customers.

First Direct, Barclays and Lloyds are offering a £175 switching bonus, while Co-op is paying £160 to new customers who transfer their current accounts.

Data shows that the current account switching service facilitated 313,293 bank account switches between April and June 2024.

CASS said: ‘In a quarter in which interest rates have stabilised and switching incentives have been sporadic, the figures offer a positive outlook on the long-term health of the current account market.

‘CASS facilitated 1,411,553 changes in the last 12 months, 10 percent more than the 1,277,484 changes recorded in the previous 12 months.

‘The continued upward trend in home changing shows that finding the right bank or building society remains a priority.’