Yahoo Finance The best and worst UK banks for current and savings accounts
The UK's challenger banks have outperformed their traditional high-street counterparts when it comes to the savings and current accounts they provide, a new survey has revealed.
Which? commissioned a survey of 4,178 savers and 4,550 current account holders that analysed several factors about their banking experiences.
These factors included application processes, customer service, and which provider had the most competitive savings rates. These elements were combined to give an overall Which? recommended provider (WRP) score.
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“Our research has found leading challenger banks are ahead of the traditional high street names in terms of both customer satisfaction and competitive savings rates," Which? senior money editor Ele Clark said.
The survey found the top-scoring banks for savings accounts were Coventry Building Society and Paragon Bank. Both banks received five stars for this metric, with Marcus and Zopa given four stars.
Overall customer experience score
The survey found that Marcus by Goldman Sachs (GS) scored highest in the overall WRPs rankings. Marcus received the top customer experience score of 85%, as well as five stars for its application processes and communication.
In second place was Chase, with an overall score of 83%. Paragon Bank came in third at 82%, which saw the challenger bank gain WRP status for the first time since 2019. Like Marcus, it received top ratings for both its application process and communication.
Coventry Building Society received a score of 79%, coming in at fourth place overall and scoring four or five stars for every element rated.
Also being granted WRP status was online and app-based provider Zopa, which achieved a customer score of 78%. Zopa scored five stars for its application process, and four stars for communication and transparency. Zopa ranked fifth out of overall performance alongside Monzo Bank.
A low amount of savers switch accounts
The survey found that only one in six savers are currently looking to switch accounts in the next year. Which? said this means many customers could miss out on higher returns from better interest rates with other providers.
An example given for instant-access accounts was the 2% difference between the best (5.15%) and average (3.16%) rates. An equivalent to losing £199 if someone saved a £10,000 pot for a year.
“Lots of us stick with the same bank for years, but with clear gaps between the best and worst providers, customers unhappy with their service or rate should consider switching," Which? senior money editor Ele Clark added.
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Which? also analysed the best and worst current account providers which saw Starling Bank come out top, and received WRP status. Overall, Starling Bank scored 83% and was cited as one of the best current account providers for mobile banking.
Nationwide (NBS.L) was the highest-scoring current account provider with a branch network, scoring 78% in the rankings. It now has 605 UK branches, more than any other banking brand. Its in-branch service received four stars, the highest mark received by any of the banks.
For the second year running, Bank of Ireland UK was the lowest-ranked current account provider, with a score of 63%. Customers gave it three stars for every part of its service.
For savings providers, Allica Bank ranked lowest, with a score of 52%. The bank is primarily aimed at small and medium-sized businesses (SMEs) but offers personal savings accounts if you can save at least £10,000.
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