Nearly half the customers of the UK's four biggest banks have no idea what interest they receive on their current accounts, according to the Consumers' Association.

More than 70% of all current accounts are held between the big four banks, even though they have traditionally paid a lower rate of interest.

Lloyds TSB, HSBC, Barclays, and Royal Bank of Scotland/NatWest pay an average of just 0.1% on current accounts far below the rate of inflation.

The Consumers' Association surveyed 11,000 of its members and found that 82% thought the big four should offer higher rates.

Hot competition

Two-thirds of the sample agreed with the statement that the big four banks offer poor rates because they think customers will not switch.

Ashleye Sharpe, Consumers' Association spokeswoman said: "These findings show that when told the truth, the big four's customers find their poor rates and customer service levels unacceptable."

The Consumers' Association survey comes at a time when competition is hotting up for current account customers.

HBOS group - Halifax and Bank of Scotland - announced in December that it would 3% interest to its three million current account customers, higher than the current rate of inflation.

Switching increases

The move has been widely seen as a direct challenge to the big four banks and, according to the Consumers' Association, more customers are now willing to switch in search of better rates and higher standards of service.

In July, figures published by Which? showed that around 3.5% (863,872) of the Big Four banks' current account customers were set to switch in the next year.

This shows a tripling in the rate of switching since the Department of Trade and Industry carried out its research into switching behaviour in 2000.