Nationwide has said that banking customers switching to its FlexDirect account could receive up to £470 in value during the first year, as new figures show it was the most switched-to financial provider in the country.
Data from the Current Account Switch Service (CASS) shows the building society recorded a net gain of 23,636 customers between April and June this year, ahead of high street rivals Barclays and NatWest. In total, 411,384 people switched bank accounts between July and September, the highest quarterly figure since the end of 2023.
Millions missing out on free cash
Despite the active switching market, Nationwide's research found that 60% of people have never switched their everyday current account, and 28% have no idea how much they could earn by making the move.
The research identified several financial "blind spots": just 36% of people understand that interest can be earned on a standard current account, only 18% currently earn cashback on everyday spending, and nearly a quarter (23%) leave surplus money sitting idle in their current account between paydays.
How the £470 value is calculated
Rachel Springall, finance expert at Moneyfacts, said: "Nationwide's FlexDirect account could offer customers up to £470 in value in the first year. The account is highly attractive all-round and rewards customers on their day-to-day spending with cashback. Those who keep a bit of cash in the account will earn an inflation-busting interest rate."
The £470 figure is made up of a £175 switching incentive, up to £60 debit card cashback, up to £60 direct debit cashback, up to £75 interest (5% maximum potential interest on balances up to £1,500), and a £100 Fairer Share payment, if paid again next year and eligibility criteria are met.
FlexDirect customers also gain access to a Flex Regular Saver offering a competitive 6.50% AER. Someone saving the maximum £2,400 annually would receive an additional £84.50 in interest.
Confidence gaps across age groups
Fred Powell, Head of Current Accounts at Nationwide, said: "Everyday spending and payments are a part of daily life and the more we know about the offers and deals out there the better we can manage our finances. Simple changes like choosing a current account with cashback and interest can make a big difference. Our new FlexDirect current account is designed for everyday spending... and we can help customers on the phone or in branch to switch."
The research also found that financial confidence does not necessarily increase with age. Over a fifth (22%) of those aged 55 and above said they lack confidence in understanding how interest is calculated, compared with 16% of 25 to 34-year-olds.
John Dentry, Product Manager at Pay.UK, which operates CASS, said it is positive to see thousands of consumers finding partners that suit their financial needs. He added: "The right support can make a real difference to families, especially when finances are stretched by factors outside their control. With 99% of switches completed within seven working days and satisfaction levels remaining above 90%, the Service continues to provide consumers with a reliable way to move to an account that suits them best."
