Halifax has promoted itself as the go-to "challenger" bank in Scotland as it returned to the Scottish high-street following a 10-year absence.
The bank, owned by the taxpayer-funded Lloyds Banking Group, believes it is returning at a good time, as customers look to switch from their scandal-struck banks.
Ongoing troubles at the Royal Bank of Scotland (including NatWest) and the Co-operative Bank have prompted customers to switch to a new bank, aided by the new current account switching system.
Halifax was keen to re-establish itself as a "go-to" bank for Scottish customers. The bank’s Group Director, David Nicholson, described the bank as a credible challenger for consumers in Scotland.
Customers are switching to the Halifax from other current account providers at a rate of 200,000 a year, he said, which is more than any other brand.
The bank is offering a £100 cash incentive for people to switch to one of its current accounts, while the reward account offers customers £5 per month if they remain in credit and pay in £750. It has also announced a cashback scheme worth up to 15%.
However, the rate of switching appears to have slowed by around a quarter since May, as other competitive deals have emerged ahead of the launch of the new switching system in September.
Why are Brits switching current accounts?
The latest TNS Global current account switching index showed that Halifax was attracting the third largest number of switchers at 13%, behind parent bank Lloyds at 14% and Santander at 21%.
Though it continues to attract plenty, Halifax's net gain has only been 4% of switchers since the new seven-day system launched.
According to the TNS index, the bank has lost 9% of switchers to other banks, while its parent bank Lloyds has lost a huge 20%.
Santander has attracted a large number of switchers despite its poor reputation for customer service.
Its innovative combination of interest worth up to 3% on balances up to £20,000 and cashback worth up to 3% on everyday utility bills has proved an irresistible mix for consumers.
The Nationwide Building Society has also performed well, attracting 11% of switchers. The mutual's FlexDirect account offers 5% interest on balances up to £2,500 for the first twelve months – a rate made more attractive by the continued fall in the average returns on savings accounts.
Have you joined or left the Halifax this year? Is it the "go-to" bank it claims to be? What enticed you to join the bank, or to leave it for another provider? Let us know in the comments below.
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