Banking and savings – customer service and reputation forefront in decision-making. - Money - News - Moneyfacts


Banking and savings – customer service and reputation forefront in decision-making.

Banking and savings – customer service and reputation forefront in decision-making.

Category: Money

Updated: 31/10/2008
First Published: 03/07/2006

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

52% of us have moved our savings because we were unhappy with customer service, according to the latest user polls. 42% of us have avoided a particular account provider due to a friend's bad experience.

With bank account providers, 46% of us have moved current account because of bad customer service and 45% have avoided a certain bank because of a friend's bad experience.

Accessing our banking and savings via the internet is becoming increasingly popular but still many of us prefer to pick up the phone or visit a branch. Our finances are something that we need to take seriously and can cause a lot of stress. This means when we want to discuss them or need help, we need to be treated fairly and receive a good service.

Banks are continually being slated in the press for unfair charges and for things such as going overdrawn. This, along with hearing about people close to us having had a bad experience, would be enough to put many of us off choosing a certain account provider. However important good service is to us, we should still be aware of interest rates being offered by different providers.

The average rate of interest paid on current accounts is 1% gross on a balance of £1. However, current account best buy charts on show that rates of over 4% can be earned on these accounts. Banking facilities should also be looked at when choosing your current account. For instance, is it important to have a branch near to you? Do you want to use internet banking?

As well as these things, if you use an overdraft on your current account it is wise to compare rates of interest on these. Moneyfacts' research of overdrafts shows that some providers are charging EARs (Effective Annual Rates) on authorised overdrafts of over 20% and for unauthorised overdrafts over 30%. Again, best buy charts on show that better deals are available with rates on authorised overdrafts as low as 0% (introductory) and unauthorised at under 6%.

Rates on savings accounts also vary greatly. On no notice accounts at £1,000 the average rate of interest is around 2%. The savings best buys charts show that rates of over 4.5% can be found. Again, account facilities should be considered.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Parents to spend £552 on children this half term

Autumn has truly arrived – and half term with it. This looks to be bad news for parents’ wallets, as research from American Express shows they will be spending an average of £276 per child this holiday break.

Are you still funding your children’s lifestyle?

While many parents like to provide financial support to their children while they grow up, often helping out with things like weddings, cars and university fees, others find that they fund more of their children’s lifestyle than they’d like.

Household spending on Christmas drops again

Brace yourselves: tomorrow we’ll be just 70 days away from Christmas. As 39% of Brits have already started their holiday shopping, research has found that household spending on Christmas has fallen for the second year in a row.