Bank popularity does not guarantee customer happiness - Which?

A survey of 3,678 Which? members revealed the four banks with the highest customer scores for current accounts control just 6% of the current account market, while the four with the lowest scores control 38%.

More competition is needed among the banking industry, said Which? adding lack of transparency and complex charging structures make it difficult for consumers to compare their deals to the rest of the market.

HSBC subsidiary First Direct earned the best customer satisfaction score in the UK, with an overall rating of 84%, but none of the other high street banks feature in the top 15.

Santander came last, with an overall customer score of just 41% while taxpayer-backed banks Lloyds TSB, Halifax, Bank of Scotland, RBS, NatWest and Northern Rock were all rated poorly.

The survey asked consumers to rate banks based on interest rate, cost, customer service, product advice and problem resolution.

Which? members rated 28 banks and building societies for customer satisfaction across current accounts, mortgages, savings accounts and credit cards.

Which? chief executive, Peter Vicary-Smith, said: "The Independent Commission on Banking has acknowledged that the market isn't competitive and consumers are infuriated by poor service. The Government must be clear how it will create more competition when it sells our stakes in Lloyds, RBS and Northern Rock. The industry must be referred to the Competition Commission if the market doesn't improve.

'The high street is dominated by banks that have a shocking record for customer satisfaction - what more proof do we need that the market isn't working? We will only have a truly competitive market when banks are made to face up to a simple choice - either look after your customers or be prepared to lose them."

The BBA said: "Banks exist to serve their customers: where customers are not satisfied, the banks will be anxious to understand their concerns and they will be looking at the Which? report closely.

"Competition is good for the banking sector, as it is for all businesses. Getting customers to use the switching process with confidence is a key element, and the banks are currently working on a current account redirection service for launch within the next two years."

On mortgage lending, First Direct came first again with 87%, with The Co-operative Bank next at 82%, followed by the One Account with 75%. Northern Rock (40%) and Halifax (41%) emerged at the bottom of the table.

Click here for the full results table.