Some of the best business bank accounts aren’t being as forthcoming with changes to their customers’ savings accounts and how they may be changing, according to newly-conducted research.
A recent study by Which? Money has discovered that a majority of the banks examined informed their customers of interest rate cuts to their savings accounts by posting adverts in the newspaper or by having the account changes publicised in a way that only a customer who comes in to visit a branch in person would be apprised of the new rates.
Only one third of the twelve banks surveyed during the research conducted by Which? Money had any guarantees in place that ensured their customers would remain informed of any interest rate changes by email or conventional post, the four banks being First Direct, ING Direct, Co-op, and Cheltenham & Gloucester.
The consumer advocacy organisation was highly critical of the remaining banks’ treatment of their consumers, referring to the behaviour as an inconvenience in addition to being behind the times, especially in light of the base interest rate set by the Bank of England being kept at an historically low 0.5 per cent.
Peter Vicary Smith, chief executive for Which?, released a statement wherein he further criticised the banks’ behavior. At a time when banks need to embrace transparency and full disclosure, Smith commented, the research that his organisation conducted revealed that the practises these banks rely on in regards to informing their customers of interest rate changes are both inconvenient and outdated, and that they are designed to purposely keep those consumers bereft of important information regarding their finances.
Smith concluded that this obfuscation by larger banks is another examplar regarding their categorically poor customer service, citing a recent survey by Which? where the satisfaction of consumers in regards to their savings accounts was polled. The survey found that smaller banks tended to offer better customer service, which resulted in customers that were more satisfied.
The British Bankers Association, dismissing the consumer advocacy organisation’s accusations as groundless, contends that customers have access to information regarding their savings accounts’ interest rates at any time via their respective banks’ websites.