Best and worst banks: how customers rate their service

We reveal the banks that are most (and least) likely to be recommended by their customers. Does yours make the list?

If you want to know which banks are worth joining and the ones you should avoid, it's worth listening to what customers who actually bank with each brand have to say.

Various institutions will regularly poll the public to understand how happy they are with their bank.

The latest such survey comes from Yougov, which revealed that Monzo customers were the most likely to say they were satisfied.

It was followed by Chase, Nationwide and Starling Bank.

It's interesting to note that smaller 'challenger' banks and banking apps rank so highly, taking three of the top four spots.

Because these businesses often have fewer overheads, they can make the most of modern technology to deliver services that customers really value.

Monzo and Starling, in particular, have led the way with app-based functionality and perks such as fee-free spending abroad.

Perhaps the standout result of the Yougov data is First Direct, a perennial winner in customer satisfaction surveys, only finishing eighth.

You can see the top 10 banks and building societies below, ranked by net satisfaction score (number of people satisfied with their bank minus those dissatisfied).

Banks with the highest satisfaction levels

Yougov nanking poll results (Image: Yougov)

Source: Yougov

Frustratingly, Yougov won't reveal the banks that fared worst in their survey.

To get a more detailed view of the banks that did well and, importantly, those that didn't, we need to turn to the Competition and Markets Authority (CMA).

Its latest data, conducted with research firm Ipsos, looks at personal current account holders’ experiences between July 2023 and June 2024.

Customers were asked about online and mobile banking, branch experiences, overdrafts, and, crucially, how likely they were to recommend their bank to friends, family, or business contacts.

Banks we're most & least happy with

Rank	Bank	Recommendation rate
1	Monzo	82%
2	Chase	78%
3	Starling	78%
4	First Direct	75%
5	Nationwide	70%
6=	Lloyds Bank	66%
6=	Halifax	66%
8=	Bank of Scotland	63%
8=	Barclays Bank	63%
10	Metro Bank	61%
11	Santander	58%
12	HSBC UK	57%
13	NatWest	56%
14	TSB	54%
15	The Co-operative Bank	51%
16	Virgin Money	50%
17	Royal Bank of Scotland	49%

Source: Ipsos

The worst offenders

As you can see from the table above, traditional high-street banks struggled in the ratings.

According to the data, The Co-operative Bank, Virgin Money and Royal Bank of Scotland ranked lowest for customer satisfaction.

Certainly, the big banks dominated the bottom half of the table, suggesting they have a long way to go in terms of keeping their customers happy.

Online and mobile accounts

With banking increasingly moving into the digital space, the researchers also asked about users’ experiences of online finance.

Here is what they discovered.

Rank	Bank	Recommendation rate
1	Monzo	87%
2	Starling	84%
3	Chase	83%
4	Halifax	79%
5=	First Direct	78%
5=	Bank of Scotland	78%
7=	Lloyds Bank	77%
7=	Nationwide	77%
9	Barclays	76%
10	HSBC UK	72%
11	Metro Bank	71%
12	Santander	70%
13	NatWest	69%
14	Royal Bank of Scotland	67%
15	TSB	66%
16	Virgin Money	59%
17	The Co-operative Bank	56%

Source: Ipsos

Given the category, it’s perhaps unsurprising that banks without a high-street presence topped the tables.

As these institutions have fewer overheads, they can focus on lowering rates and making their online services as attractive as possible.

Overdraft services

Amid the ongoing cost-of-living crisis, it’s unsurprising that the experts also looked at the cost of borrowing.

According to the findings, Monzo, Starling and Lloyds were the three highest rated banks, with scores of 78%, 75% and 72% respectively.

At the other end of the scale, Royal Bank of Scotland and NatWest had ratings of just 49%.

Cheap and free overdrafts: best current accounts for those who go overdrawn

Have your say

What do you make of these findings? And how do you feel about your current bank?

Do you agree that app-only banks are the future or perhaps you’d rather do your banking from a branch?

Let us know in the comments below.

Get great customer service and earn 3.25% on your balance with a Starling Bank current account (affiliate link)

*This article contains affiliate links, which means we may receive a commission on any sales of products or services we write about, but it won't affect the price you're offered. This article was written completely independently.

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