Current account charges to lead customer exodus

Customers are preparing to flee their banks if charges for current accounts are introduced.

New Which? research shows 79 per cent of bank customers would consider switching to another provider if annual or monthly fees were introduced.

Furthermore 73 per cent feel it would be unfair for banks to charge any additional fees for a current account with no extra services.

However, some banks have warned if the Office of Fair Trading rules overdraft charges are unfair then charges across the board for all accounts could be introduced.

"This is a clear shot across the bows for the banks – consumers don't want to be charged for their current account and will vote with their feet if their bank introduces a monthly or annual fee," said Which? personal finance campaigner Doug Taylor.

"Banks shouldn't need to be forced to treat their customers fairly. Although our research shows that customers would support government intervention to make sure banks don't overcharge for current accounts, we would be very disappointed if it came to that."

He added: "Banks only have themselves to blame for the damage that the overdraft charges saga has done to their reputation. Which? urges the banking sector to put its customers first."

Most banks are now introducing premium accounts with bundles of financial services, which are being seen as a stealth introduction of current account fees.

Customers considering such packages should look whether they will use the packages of insurance and preferential rates on offer – as many people find they end up paying for services that go unused.