"Clearly, you've got some current account problems, and we have to deal with them," Mr. Dodd said.
You can save up to £15,240 per year tax free into an ISA, but Santander's 123 and some other current accounts are currently offering better interest rates than many savings accounts.
There are around 400 credit unions in the UK, and their core products are savings accounts and loans, though some offer current accounts and mortgages.
Their core products are savings accounts and loans, though some offer current accounts and mortgages, and any profits they make stay in the community and are used to develop the credit union and provide a return to savers.
Lloyds has some 11m current accounts customers, although around 4m of them are already paying a monthly fee for what the bank describes as "value-added" services such as travel insurance and break-down cover.
The watchdog will be looking at the impact of free in-credit banking, which could be cross-subsidising the industry, as some banks insist that running current accounts loses them money.
From 2 October customers of both Lloyds TSB and BoS will see the interest rate on their overdraft increase by as much as 5%, while the annual fees some customers pay for their current accounts will rise by up to £24 a year.
Some banks have imposed charges on current accounts, most notably First Direct.
Unfortunately, some of the other top-paying current accounts are also reducing their rates.
Some of the best rates are offered by current accounts.
