Banks slammed for failing customers on current accounts

UK banks have been slammed by a key watchdog, as they feel that they have been failing customers. Many customers do not understand the interest on their current accounts; as a result they are missing out on a significant portion of the money generated.

In a recent Office of Fair Trading report on current accounts, the watchdog found that there was a lack of transparency in how UK banks operate and that competition in the market was not working.

In a study it was found that banks make £8.3bn from personal accounts, that’s more than they make from savings accounts and credit cards put together.

£2.6bn of that amount came from overdraft charges, £4.1bn came from net credit interest income, this is the profit that banks make once they paid their customers interest.

In the report the watchdog found that, three quarters of consumers had no idea as to how much interest they should have earned on their currents accounts.

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