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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.
Banks have also sharpened up their offers. Although Santander increased the monthly fee on its account last year, Tesco Bank scrapped its fees, and in March Halifax increased its joining bonus for switchers to £125.
Nationwide has also successfully turned its existing customers into recruiters. It offers £100 to customers if they persuade a friend to open a current account, as well as £100 to that new joiner. So far 59pc of new switchers join via that scheme.
Santander, Halifax and Nationwide have been the main gainers from the switching service to date, but other banks also hope to win more new customers.
The switching service launched in 2013 and aimed to shake up a market which was seen as uncompetitive as very few customers moved from bank to bank.
The scheme allows customers to change accounts in seven working days, taking their direct debits and standing orders with them, and guarantees that any payments into the old account will follow the customer to their new account for the next three years.