Lack of consumer confidence continues with High Street banking giants

For the last few years the leading High Street banks in the UK have taken a real battering in terms of consumer satisfaction and confidence levels, with many people losing faith in the biggest banks, including those that have had to be bailed out by taxpayers. A recent survey has shown that lack of confidence and satisfaction with the big High street banks continues, despite their general market dominance.

The survey was carried out by the consumer campaign group, Which?. As part of the process twenty eight banks and building societies were analysed in terms of their customer satisfaction levels. All main services were looked at when assessing customer satisfaction levels, including current accounts, savings accounts, credit cards and mortgages. This comes after it was revealed that in the first half of this year the Financial Ombudsman Service received around 54 percent more complaints about financial institutions compared to the final half of last year.

When it came to customer satisfaction levels amongst financial institutions none of the leading High Street banks even managed to make the top fifteen. In fact, the results showed that the four banks that had the highest levels of customer satisfaction when it came to current accounts controlled only 6 percent of the current account market whereas the four banks that had the lowest levels of customer satisfaction with current accounts controlled 38 percent of the current account market.

An official from Which? said: “The high street is dominated by banks that have a shocking record for customer satisfaction – what more proof do we need that the market isn’t working? We will only have a truly competitive market when banks are made to face up to a simple choice – either look after your customers or be prepared to lose them.”

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£100 incentive from Abbey and A&L

With the competition amongst the leading UK banks and building societies for increased custom some have been offering consumers incentives to entice them to switch their bank accounts, and this is something that Abbey and Alliance & Leicester have now decided to do. Read more

Tags: Leicester account, alliance & leicester bank account, bank accounts, alliance & leicester, rate, bank, uk banks, Current account

High-earners should consider premier private bank accounts, says expert

High-earning individuals should consider opening a premier private bank account since they may benefit from the additional services they offer, says Moneyfacts.

Although such accounts charge higher fees than high street accounts, Samantha Owens, head of personal finance at Moneyfacts, says they may nevertheless be a worthwhile option for people who earn a lot of money because they can receive extra benefits such as advice on investments.

“If you’re in the higher income bracket then you’re not really going to be worried about getting a current account paying 8.5 per cent up to the first thousand pounds,” says Ms Owens.

Premier private bank accounts appear to be increasingly popular, with HSBC and Schroders both reporting recent increases in private banking pre-tax profits.

Tailored services which come with the accounts include a concierge service and a discount on investment advice.

Ms Owens warned that people on an average salary are unlikely to benefit as much from the service, particularly when taking into account the higher fees.

Tags: High-earning, additional services, Current account, hsbc, Head of Personal Finance, bank account, investment advice, option