Customers shackled to their bank

Almost two out of three people feel trapped by their banks, according to independent personal finance website, Fool.co.uk.

Many disgruntled customers say they want to move banks but can’t for various reasons. The findings are part of an investigation into the relationship between banks and their customers.

One in four people say there is hardly any point in moving to another bank because all banks are the same. One in eight people feel it is too much bother to move banks, and one in 16 people have been put off switching banks because they believe it may cause payments such as direct debits to go astray.

The state of a customer’s bank account is a deciding factor in whether to switch as one in seven people say they can’t move banks because they are currently in the red. Twice as many women as men cited being overdrawn as the main reason they are forced to remain with their bank.

David Kuo, Head of Personal Finance at Fool.co.uk says: “It is disappointing to see that two out of three people are shackled to their banks. It is also upsetting to discover many people are under the misapprehension that switching bank accounts is both futile and troublesome.

“Perhaps the most distressing finding is that many people believe that being overdrawn prevents them from moving banks. These customers can benefit greatly from moving to banks with better deals.

“Being overdrawn is not a crime, and it doesn’t mean you have to be handcuffed to your bank. A quick trawl through best-buy tables will quickly highlight banks that can offer customers attractive deals - some with interest-free overdraft limits of up to £2,500 for 12 months.”