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UK bank rates 'annoy customers' | UK bank rates 'annoy customers' |
(about 6 hours later) | |
Low interest rates on current and savings accounts are the biggest gripe among UK bank customers, a survey from consumer group Which? suggests. | Low interest rates on current and savings accounts are the biggest gripe among UK bank customers, a survey from consumer group Which? suggests. |
Nearly half of Which? members surveyed said they were "annoyed" at their bank's interest rate. | Nearly half of Which? members surveyed said they were "annoyed" at their bank's interest rate. |
However, just one in five Which? members has switched current account to take advantage of a better rate. | |
Just four High Street banks - Barclays, Lloyds TSB, RBS and HSBC - have the bulk of the UK current account market. | Just four High Street banks - Barclays, Lloyds TSB, RBS and HSBC - have the bulk of the UK current account market. |
Some current accounts offered by the big four pay as little as 0.1% interest. | Some current accounts offered by the big four pay as little as 0.1% interest. |
In contrast, the highest-paying account in the marketplace offers about 6% interest. | In contrast, the highest-paying account in the marketplace offers about 6% interest. |
Customer inertia and concerns over administrative error are often cited as reasons for people not switching their current account. | Customer inertia and concerns over administrative error are often cited as reasons for people not switching their current account. |
Fee-charging accounts | Fee-charging accounts |
A separate survey from financial website MoneyExpert.com suggested that public opposition to charges on current accounts might not be as great as some consumer groups have suggested. | A separate survey from financial website MoneyExpert.com suggested that public opposition to charges on current accounts might not be as great as some consumer groups have suggested. |
The survey of nearly 2,500 adults suggested that three-quarters of consumers would be willing to pay a small monthly fee to their current account provider if hefty penalty charges were dropped and service improved. | The survey of nearly 2,500 adults suggested that three-quarters of consumers would be willing to pay a small monthly fee to their current account provider if hefty penalty charges were dropped and service improved. |
"Opposition to paid-for banking may not be so severe if banks can prove it'll result in a fairer system," Sean Gardiner, chief executive of MoneyExpert.com, said. | "Opposition to paid-for banking may not be so severe if banks can prove it'll result in a fairer system," Sean Gardiner, chief executive of MoneyExpert.com, said. |
"But banks have to be realistic. To extend that [fee-based banking] to everyone without bringing to the table extra services or better prices is not going to be a popular move," he added. | "But banks have to be realistic. To extend that [fee-based banking] to everyone without bringing to the table extra services or better prices is not going to be a popular move," he added. |
In recent months, there has been a growing consumer campaign against bank charges. | In recent months, there has been a growing consumer campaign against bank charges. |
Tens of thousands of consumers have threatened their bank with court action in a bid to have penalty charges refunded. | Tens of thousands of consumers have threatened their bank with court action in a bid to have penalty charges refunded. |
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