Your chance to bag £175 by switching to the bank voted Britain's BEST for customer satisfaction
Banks First Direct and Starling have been named the best British organisations for customer satisfaction, even though they have no physical presence on the high street.
The banking duo beat high street staples M&S, John Lewis and Holland & Barrett to the top two spots in the UK Customer Satisfaction Index.
Nationwide dropped from second place in July 2024 to fourth, despite a promise to keep all of its branches open until 2028 – with an advertising campaign featuring the actor Dominic West.
First Direct* is currently giving £175 to those who switch their current account, with terms and conditions applying. You can read more details on what you need to do to qualify below.
Average satisfaction with banks and building societies has increased since July 2024 and banking is now the second best-performing sector overall, behind non-food retail.
Jo Causon, chief executive of the Institute of Customer Service, which runs the survey, said this reflects improved customer-focused regulation, forcing 'boards to increase their focus on customer experience, including better communication, greater clarity on product offerings and refocusing staff on customer outcomes.'
Switching terms Account details
First Direct 1st Account* To get the £175 you must:- Not have had a First Direct product or HSBC Current Account since Jan 2018 - Switch using the Current Account Switching Service within 45 days of account opening, including 2+ direct debits or standing orders- Deposit £1,000, make 5+ debit card payments and log in to digital banking within 45 days - Requires credit check - 0% EAR variable on overdraft up to £250, 39.9% EAR variable thereafter; representative rate 30.5% APR variable- For customers with an offset mortgage linked to a 1st Account, interest-free limit won't apply
Great customer service 'not as simple' as branches versus phone and digital
First Direct* is well-regarded for its fast 24/7 phone-based customer service and has also made improvements to its mobile app in recent years. It leapt from 14th place in last year's satisfaction index to the top of this year's table.
Starling Bank* is a digital-first challenger bank that's grown substantially since it launched in 2014, and itself has seen a sizable jump from last year's satisfaction survey, going from sixth place to second.
The Institute of Customer Service puts this jump in performance down to the introduction of the FCA's Consumer Duty rules, which aim to make sure financial firms are delivering good outcomes for customers.
'The strong performance of First Direct, Starling and Nationwide shows that good customer service is not as simple as branches versus telephone and digital, human versus AI or bank versus building society,' said Jo Causon.
> Learn more about First Direct and switch*
> Learn more about Starling Bank and switch*
Should you switch bank?
Many people remain with their bank for decades, despite there being potentially better current accounts on offer elswhere.
Perks can range from interest on balances, to fee-free spending overseas, while different banks' apps and features can make a difference to how you manage your money.
This is Money has long been a fan of both First Direct and Starling's current accounts. The former has a strong history of good customer service and the latter has a good app and no charges for spending abroad.
In our view, Nationwide, in fourth place in terms of customer satisfaction, is also a great choice for earning interest on the cash in your account, offering 5 per cent on FlexDirect balances up to £1,500 in the first year. After this it drops to just one per cent. There's also up to £5 cashback available each month on debit card purchases for the first year.
First Direct's £175 offer* is a great option for earning cash on your switch, with £175 up for grabs. You must be a new customer and use the Current Account Switch Service to bag the deal. Make sure you read the terms and conditions before going ahead.
There isn't currently an end date for the offer. But First Direct says it can be withdrawn at any time, so if you want to make the switch, it makes sense to do so while you still can.
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