Record numbers of bank customers switched their current account to a rival lender last month, hinting that competition between banks may at last be taking off.
Almost 125,000 customers used the switching service to open a new account, a rise of 13pc on the month. That means more than 2.8m customers have used the service since it launched in September 2013.
One boost could come from the change to savings rules – from 6 April typical savers can receive up to £1,000 of interest tax-free per year, effectively removing ISAs’ main advantage and encouraging bank customers to shop around for interest-paying current accounts.
That could benefit banks such as Santander, which pays a headline rate of interest of 3pc, as well as TSB, which pays 5pc on some deposits.