Personal Finance: Banks 'short-changing customers'

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The Independent Online
Millions of bank customers are being short-changed on their current account interest, a report claimed yesterday.

According to the latest banking survey from the Abbey National, about 16 million of the UK's 61 million current account holders receive no interest at all on their credit balances - an estimated pounds 130m loss in potential interest per year. But the report emphasised it was not just those with non-interest bearing accounts who are losing out. About a third of customers, or 12.5 million accounts, who are paid interest on their funds, said they were dissatisfied with the rate they receive - mainly because of the flat rate they were paid, irrespective of their balance amount.

Of particular concern, the report said, is that nearly 2.5 million customers are still very unhappy with their current existing current account, while just under a million are "extremely dissatisfied". Two out of five blame their discontent on shoddy levels of service and errors made on their accounts, while one in three are dissatisfied with service charges such as duplicate statements and stopped cheques.