Slow exodus from Big Four

By HELEN MONKS
Updated:

 

ABOUT 3.5% of the Big Four bank's current account customers are set to switch in the next year, according to Which? research.

Although this is a small proportion of customers, they would number around 864,000. The latest figures also show the rate of switching has almost tripled since the Department of Trade and Industry carried out its research into switching behaviour in 2000. Back then only 6% of total current account customers had switched in the previous five years.

Which?'s figures are based on information supplied by ten banks and building societies whose current accounts are rated best buys by Which?, including, Alliance & Leicester, First Direct, Nationwide, Smile, Citibank, Intelligent Finance and Zurich Bank.

Previous research has shown that not only do the Big Four banks have poor rates of interest, many of their customers are less satisfied with the service they receive than those of other banks.

The Big Four pay only 0.1% interest on credit balances, although several other banks offer more than 30 times that at 3%, and charge up to 18% for overdrafts, although several alternative accounts charge half this.

Barclays, LloydsTSB and NatWest get the lowest rating for customer satisfaction in Which?'s annual member survey, 2001, while HSBC scored average.

Ashleye Sharpe, Which? head of money research says: 'We're delighted to see these figures show more and more Big Four customers are voting with their wallets and refusing to put up with dreadful rates of interest and poor service.'

Which? is encouraging the 23 million people who have never considered switching banks to think again if they're not happy with their interest rates or the service they receive.

If the 70% of people who bank with the Big Four switched to one of the best accounts around, its estimated they could collectively save up to £500 million.

Which? has set up a website to help all consumers to find the current accounts offering the best rates and best service for their circumstances.

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