Britain’s two state-backed banks are guilty of squeezing savers and borrowers more severely than rival institutions, figures indicate. This apparent rapacity is signified by the gap between the rates charged to borrowers and the interest paid to savers. Simply, when savings returns are far below the interest charged on loans, there is a larger margin which the bank can turn into profit. At the latest reading, RBS had a 3.57 percentage point gap – almost three times the 1.29 point difference at Barclays. By comparison, Lloyds had a 2.23 percentage point gap. The next largest margin is 1.7 percentage points at HSBC, followed by 1.55 points at Santander. The figures, which are known as the “net interest margin” and are documented in each company’s annual results for 2013, were compiled by economist Andrew Gall, who works for the Building Societies Association.

http://www.telegraph.co.uk/finance/personalfinance/interest-rates/10931115/RBS-and-Lloyds-squeeze-customers-hardest.html