NatWest and Nationwide customers issued £200 message as 'huge' switching takes place

'Huge' amounts of people have abandoned NatWest in favour of moving to Nationwide for banking, new figures have shown.

People have been keen to take advantage of a £200 switching deal from Nationwide which has resulted in plenty of customers ditching rival NatWest.

Many banks tend to offer some kind of 'free money' deal for opening up an account with them, although these are sometimes only active for a limited time.

This is often carried out in order to pull in new customers and draw them away from rival banking companies, Birmingham Live reports. They also know it works as many people choose to "follow the money", experts say. And the figures prove they are often too good to turn down.

Households are often encouraged by money experts such as Martin Lewis to consider taking up the offers if they are right for them. That's because they are often fairly hassle-free and deliver free cash.

It confirms as Virgin Money has launched a new account offer with a 10% interest rate in a bid to entice new customers.

Alastair Douglas, CEO of TotallyMoney, said it's always worth checking the details of any offer: "Not too long ago, banks were offering customers £200 to move their money in what were easy-to-understand terms.

"And last month's Current Account Switch Service figures showed huge numbers of people had left NatWest and moved to Nationwide, suggesting that some simply follow the money, securing sign up bonus after sign up bonus. Which is likely to be the reason why customers are now being asked to jump through hoops to secure the headline offer, reaching minimum transaction requirements, completing multiple app logins, and even setting up separate savings accounts.

“The new Virgin Money current account offer advertises an inflation-busting headline savings rate of 10%, but the reality is that it’s capped at £1,000, representing earnings of £100 if a customer locks in their money over 12 months. And locking in their customers is what the banks are now looking to do.

“And if that’s the direction we’re moving towards, then let’s hope we see greater transparency in how these products are advertised, with clearly outlined terms and conditions to how customers can secure switching bonuses. Otherwise, it’s likely the Financial Ombudsman will see even more complaints from customers about current accounts over the course of this year.”

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