The study, conducted by Opinium on behalf of LHV Bank, highlights growing frustration with both traditional and digital banks.
,With most consumers (two-thirds) agreeing that digital banks should pass on the savings from not operating physical branches, the pressure is rising on financial institutions to deliver better value and transparency. In fact, 41% of respondents would support government legislation to ban 0% interest current accounts altogether.
,According to the LHV survey, the disconnect between income growth and financial wellbeing is stark. While 29% of respondents say they’ve earned more in 2024, 31% feel worse off financially. Women are especially affected, with 35% feeling financially worse off compared to 28% of men.
,This financial strain may be explained in part by a growing gender gap in saving habits. On average, men save £280 per month, which is £115 more than women (£165). Men are also more likely to earn interest on their current accounts and at higher rates. 47% of male account holders that earn interest receive more than 2.1% AER, compared to just 35% of women.
,Kris Brewster, director of Retail Banking, LHV Bank, says: “We launched our current account to raise the bar in banking – by rewarding customers with meaningful rates at a time they need it the most. We’re paying a highly competitive 3.25% interest rate and are still able to grow responsibly and profitably – demonstrating that running a strong bank needn’t come at the expense of rewarding customers. We choose to share value back with our customers. Most banks could do this – they just choose not to.”
