The survey was carried out by the consumer campaign group Which? and involved the analysis of a total of twenty eight banks and building societies with regards to their customer satisfaction levels. This included satisfaction levels across the variety of services provided, such as current accounts, mortgages, credit cards, and savings accounts.

The results of the survey showed that none of the leading High Street banks in the UK managed to make it to the top fifteen when it came to customer satisfaction levels. The results also showed that the four banks that had the highest customer satisfaction levels when it came to current accounts controlled only 6 percent of the current account market whereas the four banks that had the lowest customer satisfaction levels with current accounts controlled a massive 38 percent of the current account market.

Peter Vicary-Smith, Which? chief executive, 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.”

Data has also shown that in the first half of this year the number of complaints about financial institutions that were made to the Financial Ombudsman Service increased by 54 percent compared to the last half of last year.

Banks still have low levels of customer satisfaction is a post from: The Thrifty Scot

Recently the Bank of England announced that the base rate would be held at its record low once again, as the Monetary Policy Committee tries to handle the challenging task of deciding whether to keep rates on hold or increase them. However, whilst some people are still pleased about the decision to keep rates on hold there are now many who are not so happy with this decision.

A recent survey has shown that more than half of Brits are now keen to see the base interest rate increase. In total 52 percent of Brits said that they would now like to see the base interest rate increase. Around 41 percent said that they wanted to see the base rate increase so that they could get a better return on their savings, as savers have lost a huge amount of money over the past couple of years as a result of the low rate giving them little to no returns on their savings. In addition to this 11 percent of those polled said that they would like to see the base rate increase so that it could help to bring the rate of inflation down.

One official said: “With the Bank of England Base Rate sitting at a record low for the past two and a half years it is clear that there have been winners and losers, with savers generally feeling the combined impact of low rates and high inflation. Some borrowers have benefited, particularly those mortgage borrowers with large deposits, or those who want to borrower larger amounts on personal loans.”

Half of Brits hoping for interest rate increase is a post from: The Thrifty Scot

However, one industry official has recently claimed that part of the reason behind lower lending figures from the big banks when it comes to small business loans is that the demand for loans from small businesses is not as great as many people think. This claim comes from Anthony Thomson, chairman and co-founder of Metro Bank. He was speaking at a recent conference just a day after figures were released showing that banks were failing to meet their agreed targets with regards to lending to small and medium sizes businesses.

Banks have argued that whilst they have made business loans available and are willing to lend many small businesses simply do not want to borrow money in the current climate, and this is affecting the banks’ ability to meet targets. Thomson said that his bank had made small businesses the target customer but that whilst many businesses had signed up with the bank the demand for credit had been far lower than anticipated.

He stated: ‘I hate to sound like I am defending the big banks but our experience is that there is just not the demand for credit from small companies.’ He added that many businesses were failing to demand the best rates on borrowing, adding: ‘I always thought small firms would be very sensitive to interest rates, but they are even less concerned about the rates than consumers.’

Official claims there is little demand for loans from small businesses is a post from: The Thrifty Scot

There were many reasons behind the complaints that were filed against the banking industry during this time, which included poor financial advice on matters such as pensions, substandard service, poor levels of customer services, and of course the highly controversial Payment Protection Insurance cover.

The FSA has started forcing banks to reveal complaints numbers that they have received in a bid to try and improve on the services that banks offer to customers. This is the second time that these figures have been released, with the FSA not even hesitating to name and shame the banks that have received huge numbers of complaints, such as Barclay’s, which received the highest number of High Street bank complaints according to reports.

During that six months period Santander received the second highest number of complaints, followed by Lloyds TSB, and then Bank of Scotland. There was an increase of 11 percent in the level of compensation paid out to dissatisfied customers with extra complaints arising from Payment Protection Insurance.

In a separate report the Financial Ombudsman Service recently revealed that the levels of complaints it was receiving had increased so much that it was taking up to two years – more in some cases – to resolve some of the cases and complaints that it was receiving from consumers.

Dubious honour for Barclay’s Bank is a post from: The Thrifty Scot

The Monetary Policy Committee has been under huge pressure to increase the base rate given the soaring rate of inflation. The rate of inflation now stands at 4 percent, which is the double the target level that is set by the government, which is just 2 percent. Many industry officials and organizations have been calling for a rate rise to bring inflation down, and with three members of the MPC voting for a rate increase in the February meeting many have been expecting to see at least a small increase this month.

However, members of the MPC have had to perform a fine balancing act, as any rate increases could bring down inflation but have an adverse effect on the economy. The Bank of England did not reveal any plans to extend the Quantitative Easing plan, which suggests that this will continue to be on hold for the foreseeable future.

Many experts are predicting that it will be later in the year before any base interest rate increase is applied. However, one industry official said that it could come sooner as it was dependent on the mood of the MPC.

He said: ‘It is possible that, despite today’s vote to leave policy unchanged, the hawks gained the support of another member. Accordingly, a rate rise within the next few months would hardly come as a shock. But raising rates now would just mean that it will take even longer for them to get back to “normal” levels. If rates do rise, I expect the move to be a small one – and if I am right about the economic outlook, even this might later be reversed.’

No change to interest rates is a post from: The Thrifty Scot

These details have been released after a year long study was carried out, which involved eleven thousand interviews that were carried out face to face. It is claimed that some advisors are still charging fees and commissions of up to 37.5 percent but that many people are not even aware of this. Banks are said to be amongst the worst offenders according to the survey results.

It was shown that a large chunk of investors’ money was being swallowed up in fees and charges but many were not aware of this. Many were found to think that they were not being charged at all, and the study showed that 20 percent of those that went to an independent financial advisor were not aware of how much they paid. One industry official involved in the research said that banks were failing their customers in terms of regulatory obligations.

Another official said: “Advisers who sell investment bonds can receive up to 6pc-7pc or even 8pc initial commission. These high initial commissions are seen as the primary reason why unscrupulous advisers might recommend investment bonds when an alternative investment product may be just as good or even better. A good adviser will rebate some of their initial commission – particularly on large lump sums – to boost your investment. Make sure you ask for this and get the rebated commission applied to your fund value.”

Some investors getting ripped off with fees is a post from: The Thrifty Scot

This is the 22^nd month where the base rate has been at its all time low rate of 0.5 percent, which is the lowest it has ever been in the history of the Bank of England, which spans over three centuries. Over recent months the rate of inflation has been rocketing, and has now soared to way above the 2 percent target set by the government. Moreover, the governor of the Bank of England, Mervyn King, has recently said that inflation could hit 5 percent this year although he did add that this could fall in 2012.

With this in mind the MPC has found itself under increased pressure from various industry groups to increase inflation in order to try and bring down the soaring rate of inflation. However, with the economy still in a fragile state the MPC has also had to focus on the effect that a rate rise could have in terms of further damaging the economy.

One industry expert said: ‘Wage settlements are the key – with no sign of any second-round [inflation] effects, there is no reason for the MPC to raise rates. We calculate that if you strip the VAT effects out of core inflation, you are left with an underlying rate of inflation that is close to 1%. Though the pressure [on the MPC to raise rates] will become increasingly fierce, we expect the MPC to be able to hold firm for the whole year.’

Base rate remains on hold for 22nd month is a post from: The Thrifty Scot

The report was released by PricewaterhouseCoopers, and the data suggested that the average household would have to put aside far more of their income in order to deal with the debt repayments. This comes after reports that the Bank of England is likely to start increasing the base rate over the first half of the year due to soaring inflation, which is a prediction that many industry experts have made.

Some industry officials believe that the base interest rate, which has been at an all time low level of just 0.5 percent for nearly tow years, will rise by June of this year, which could have a big impact on borrowing. Many borrowers would be hit by an increase in the interest rate, ranging from homeowners with variable rate mortgages to credit card users and those with loans.

In a recent warning the Bank of England said: “Currently, around two thirds of outstanding mortgages in the United Kingdom have floating interest rates, somewhat above the average over the past five years. That proportion is rising as mortgagors move on to standard variable rate products as existing fixed-rate deals expire. This exposes more households to the risk of increases in interest rates.”

Another industry official said: “It’s going to be a tense start to 2011. However, it’s vital that the MPC [the Bank's monetary policy committee] stands firm. A premature rate rise would boost the pound, weakening the UK’s ability to increase its exports – particularly into the emerging markets – which we have long maintained hold the key to the UK’s economic recovery.”

More money needed by households to deal with debt is a post from: The Thrifty Scot

The banks have been fined a total of £2.8 million after investigations showed that they had not been dealing with customer complaints properly. The FSA said that the risk of customers being treated unfairly by the banks was unacceptably high, and the regulator highlighted a number of areas where there were concerns over the dealing of complaints, including delays with investigations, inadequate explanations, and substandard investigations into complaints.

The performance of the banks when it came to customer complaints was highlighted initially in 2009, when the FSA was looking into the performance of all the major banks when it came to dealing with complaints. Of the small sample of complaints that it examined from RBS and NatWest over half had not been dealt with properly according to reports.

RBS officials agreed that the complaints had not been properly dealt with, and said that improvements were going to be made in the areas that had been highlighted by the FSA. One official said: “We recognise the importance of complaint handling for our customers and are focused on addressing the root causes of complaints.”

The FSA said that it did not believe that the bank had intentionally profited from the its problems, and said that it was probably down to poor training and guidance for staff that dealt with complaints. A spokesperson from the FSA said: “We expect firms to treat customers fairly and that consumers can be confident that their complaints will be dealt with properly.”

Banks fined over customer complaints is a post from: The Thrifty Scot

The report claims that the figure of £7 billion does not include any money that is kept in wallets and purses so that actual amount of money that Brits have on them and stash in the home is even higher. Officials have said that the data shows just how little trust consumers still have in the banking industry in the UK, and 4 percent of respondents to the survey said that they kept over £1000 at home rather than putting money in the bank.

Around 10 percent of those that took part in the survey said that they preferred to have their cash in their own possession rather than in the possession of banks. However, for many putting their money in the bank has become pointless because of the lack of return that they get. With interest rates for savers so low many believe that it is pointless to put their money in an account where it will get nothing back.

However, one industry official warned: ‘Even though rates are currently low, those wishing to save money should always do so with a bank, building society or credit union which is covered by the FSA, the UK financial regulator. It is vital that savers know their money is protected up to the new limit of £85,000. By contrast, those deciding to keep money at home, whether as savings or for convenience, may not be covered by household insurance in instances such as burglary. Under new rules, if financial institution were to fail most customers will get their money in a few weeks, so there really is no need to stash it at home.’

Banks still being rejected by consumers is a post from: The Thrifty Scot