Little to grin about at Smile, the Co-op's Internet banking arm. From 6 August Smile will be paying ZERO interest on all three of its current accounts. Plus, it's hiking its overdraft rate to 18.9% from 15.9%.

Roll back 13 years and Smile was paying well over 4% for current account holders. Some difference.

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Different?

AOL Money asked Smile for a response and press spokesperson Catherine Turner said the rate drop brought the Smile account in line with other Co-op accounts. But wasn't Smile - a cost-saving Internet operation without the usual bricks-and-mortal expenses - supposed to be a bit different?

"The nature of the market has changed since Smile launched. The rates were 0.12% but have gone down to zero. Lots of people like Smile because of the tone of language. We do well on customer service."

"Some people are looking at market leading rates and paying zero per cent we're not going to attract those people. But people wanting really good customer service, we still offer a great Internet service."

Last laugh

But many player offer a decent Internet service already. The move is disappointing given that the Bank of England base rate remains unchanged.

For those unhappy with Smile's offering, you could consider a Lloyds TSB Classic Vantage account which pays 2% on balances of £1,000 with a minimum £1,000 being paid into your account each month. A Which? recommendation.

However Lloyds comes some way down the Which? customer satisfaction table with a customer score of 56%. First Direct still remain top of the heap with a 93% score, with Smile just behind at 88%.

Yet is being efficient and polite enough? A bank isn't your personal friend. And wouldn't you smile if someone kept giving you money each month? Especially if you didn't give have to give anything in return?

Customer bank satisfaction, Which?


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