There has been a huge surge in the number of people switching current accounts in the first six months of the year, data suggests.

The number using the Current Account Switching Service between January and June was up 38.5 per cent compared to the same period in 2025. 

People switch for a variety of reasons but one key driver is free money on offer from major banks who battle for customers.

In the past three months, June was the busiest with 116,345 switches. Followed by April with 89,908 and May with 82,746.

The biggest winners of those hopping banks were Nationwide, Lloyds and Monzo, according to CASS. 

Nationwide saw the largest number of people switching into it at 58,448, double that of nearest rival Lloyds, which saw 24,349.

It's likely people were tempted by Britain's biggest building society thanks to a £175 switching bonus and the lure of a potential £100 Fairer Share payment in the future.

Meanwhile, the biggest losers were Halifax and Barclays.

Halifax lost a net 21,869 customers while Barclays lost 20,780. Another two who lost a net number of customers include NatWest and Chase.

Both Barclays and NatWest are offering £200 switching bonuses as competition for current account customers remains intense, while Chase UK is not currently offering a cash switching incentive.

Halifax is also undergoing a major structural transition as the 173-year-old brand is phased out and customer base and accounts migrate to Lloyds.

In total, 288,999 switches took place across the participating 53 banks and building societies between April and June. 

Cash bonuses are like a reward for opening a new current account with a bank and using CASS.

Many people switch current accounts simply to earn free money but they must fit the criteria, depending on the bank.

In total, Nationwide gained 58,448 customers while Lloyds acquired 24,349 and Monzo scooped 21,894.

Lloyds previously offered switching cash bonuses of up to £500 for select accounts, while a £175 switching bonus is still available when you move an account to Nationwide.

Monzo bucks the trend, as it doesn't offer traditional cash switching bribes.  

It operates through a mobile app and offers features like instant spending alerts, budgeting pots and free card use abroad. 

Andrew Hagger, Personal Finance Expert from Moneycomms says Monzo's referral incentives could be behind its surge in switching popularity.

Referral incentives are rewards given to existing customers when they refer a new person to the company.

It could be a direct monetary payout ranging from £20 to £100, provided the new customer successfully opens a qualifying account and meets the specific activity requirements.  

He said: 'It's certainly started to ramp up its advertising and marketing - it also offers referral incentives for existing Monzo customers, so that could be driving some new business.'

Andrew added: 'The Nationwide and Lloyds switching figures are fuelled by switching incentives (or cash bribes) being offered - people see bank switching as an easy way to earn an extra £150- £200 to help them boost their bank balance to help with cost of living pressures.

'It's certainly worth switching at least once - if you move to Nationwide for example, you may wish to stick with them as they have been paying an annual fairer share payment of £100 for the last few years (no guarantee this will continue for future years).'