One-third of Brits do not understand banking

By Sarah Engle, Fri 4 Mar 2011 - Published in Banking

Nearly one in three Britons have no idea what the banking sector actually does with their money, according to new research.

The survey from Triodos Bank found that despite controversy surrounding the industry, 35 per cent of account holders believe their banks add occasional interest to their savings or lock the money away in a vault.

Huw Davies, head of personal banking at Triodos Bank, said: "Just one in three people 35 per cent say they are satisfied with how their bank uses their cash, while around two thirds 61 per cent of the public say they would like to be with a bank which shares their values."

It also discovered that only one in ten people understood their savings could be lent out to a wide range of companies.

He added, the report found that 47 per cent of customers were aware that their savings would commonly be used to lend to mortgage borrowers.

Recently, the Financial Services Authority warned that the banking service's developing new sources of non-interest income may not be considering customers needs.

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