The major high street banks are still being outgunned on customer service by their smaller rivals, according to the latest results from the consumer association, Which? in its annual current account satisfaction survey.

The ‘big four’ banks only offer the vast majority of current account customers a paltry 0.1 per cent interest and overdraft rates that are up to twice as high as the best on the market. Customers of the ‘big four’ could save over £500 million a year if they switched to banks with better rates.

Bottom banks

The latest survey finds that Barclays, LloydsTSB and NatWest are still in the bottom category for satisfaction (last out of five) with HSBC only just above - only 30 per cent of LloydsTSB customers were very satisfied compared with 91 per cent of Smile customers. Barclays and NatWest fared little better at 34 and 36 per cent respectively.

Top treatment

Top banks for customer satisfaction, and with good credit interest and overdraft rates as well, are Smile and First Direct. Of the 'high street' banks and building societies offering a branch network that offer good rates, Nationwide has the most satisfied customers. Full details of current Best Buys can be found at www.switchwithwhich.co.uk

Until now people have been reluctant to switch, due to lack of awareness of alternatives and fear of problems moving direct debits, says Which?

But the direct debit transfer system the banks introduced in 2002 has made switching your current account easier than ever. The old bank now has to send the new bank details of direct debits and standing orders within 5 working days. The new bank then sets them up for the new account, cutting out a lot of hassle for the customer.

The latest Which? member research found that 95 per cent of those who'd switched current account this year found it straightforward.

*Lloyds TSB will pay customers who pay in more than £1000 pcm 2.53% credit interest and those paying in more than £2000 pcm 3.2% credit interest but only if they register online and access their account online at least 6 times every 3 months.