A key watchdog has slammed high street banks for failing customers who do not understand the interest on their current accounts and miss out on a significant portion of the money made.
The Office of Fair Trading said that there was a lack of transparency in the way banks worked and that competition was not working in the market.
A new report on UK personal accounts found that banks were making a net credit interest income of £4.1bn.
The figure relates to the amount of profit made from current accounts after banks have paid customers their interest.
The OFT said the lack of understanding accounted for the low rate at which Britons switch banks.
Only 6% of consumers have changed banks in the last year - one of the lowest rates in Europe.
OFT chief executive John Fingleton said: "Personal current accounts are a vital gateway to effective participation in the economy.
"But this market is not serving consumers well.
"Customers lack the information they need to choose the best deal, and this in turn weakens the banks' incentives to compete."
Source: http://uk.biz.yahoo.com/16072008/140/banks-rapped
-current-accounts.html
