Money digest: today's need-to-know financial news | 21 April 2016

Millions of current account customers are languishing on terrible rates. Now new research shows that the number of Britons switching accounts has hit its highest monthly level.

According to Bacs, the payments body, a total of 124,615 ditched their bank for pastures new in March, up 10 per cent compared to this time last year. Santander, Nationwide Building Society and Halifax were the biggest winners in terms of those switching in. Santander made a net gain of around 51,000 customers using the seven day switching service between July and September – far higher than any other provider.

Kevin Mountford, head of banking at MoneySuperMarket, said: ‘The latest current account switching figures are very encouraging and it’s great to see both a 20 per cent increase since the last quarter’s figures, as well as a 10 per cent annual uplift. But while the increase in figures is positive news, the number of switches is still comparatively small, given there are 65 million active current account holders in the UK.

‘Banks and building societies therefore have a good opportunity to capitalise on these people and should continue to create innovative products that create consumer excitement and encourage switching, especially as it’s only a handful of providers that are making net gains from switching activity at the moment.’