The Swedish banking sector is characterized by an oligopoly. Despite new actors andincreased digitizing, the major banks still have the majority of the market shares – whichmay be explained by switching costs. Thus the purpose of this thesis was to measure theswitching costs and its impact on price and competition within the banking sector. Thethesis was limited to the deposit market and subsequently eight banks. The switching costwere analysed through a quantitative and deductive method, using method technique –the value of the costs is estimated through data consisting of fees and market shares. Theresults shows a trend of stabilization on the price development within the bank sector overthe past ten years. Due to the switching costs the banking sector suffers from lock-ineffects, which dampens the competitiveness on the market. The results is in line withprevious studies where high switching costs exists within banks with high market shares– banks with low market shares has low switching costs.