It can still take several days to clear a cheque

Interest payments on mortgages, loans and credit cards swell the banks' coffers.

It may seem to many that while Britain drowns in a sea of debt the banks are enjoying their very own gold rush.

A quarter of HSBC's 2003 profits were made in the UK, and it made around £70 profit per customer.

As its advertisements stress, HSBC is a "localised" global bank, with about 100 million customers and 9,500 offices in 79 countries.

The bulk of its profits came from acquisitions elsewhere - US personal loan firm Household International and HSBC Mexico.

Although Household International operates in the UK, HSBC says its British market accounts for less than 10% of this division's profits.

Retail myth

According to the British Bankers' Association, banks make little out of their retail customers - that's you and me.

"Banks make a major percentage of their money through corporate banking, overseas loans, the stock market and trading in currencies," said Brian Capon, spokesman for the BBA.

As for punitive charges for going overdrawn Mr Capon believes these can be overplayed.

"More than half UK consumers get free banking. All consumers have to do in return is keep in credit and if they are going to go into the red let their bank know, before it happens."

Hidden charges

But consumer groups remain unconvinced that banks aren't fleecing UK customers.

Banks operate a system of death by a thousand charges Stuart Cliffe, National Association of Bank & Insurance Customers

"Free banking is a myth. Banks operate a system of death by a thousand charges. Buy a mortgage, repay a loan early or go overdrawn and banks hit you," said Stuart Cliffe, chief executive of the National Association of Bank & Insurance Customers (NABIC).

In 2000, Don Cruikshank, the former telecoms regulator, wrote a report which was highly critical of the way banks treat their customers.

In particular, Mr Cruikshank wanted to see improved customer handling and a speeding up of cheque clearing.

He was also unhappy with the banks' role in providing services for low-income households in poor neighbourhoods.

'Poor service'

Last week, the Office of Fair Trading suggested banks should be paying interest to customers for the time it takes for electronic payments to clear.

Consumers will spend five hours choosing a DVD player but only minutes reading the small print of their mortgage agreement Philip Middleton, Ernst & Young

But four years on little has changed, according to Mr Cliffe.

"They are still overcharging and it still takes a ridiculously long time for people to get hold of their money."

"What is more, more customers than ever are complaining to us about poor bank service," he added.

'Stop complaining'

Recently, UK credit card providers were criticised by the powerful parliamentary treasury select committee for a lack of transparency over charges.

The committee said that lack of transparency over charges allowed some credit providers to get away with charging exorbitant interest - often seven or eight times the Bank of England base rate.

Churchill's bulldog has a new owner

In addition, the marketing tactics used by banks to tempt people into taking out loans and credit cards also came under fire.

But according to Phillip Middleton, banking analyst with Ernst & Young, consumers should take responsibility for themselves rather than complain about bank profits.

"We have the best availability of financial services in the world but that brings responsibility.

"Consumers will spend five hours choosing a DVD player but only minutes reading the small print of their mortgage agreement," Mr Middleton said.

A third of tax

All in all, the UK economy undoubtedly benefits from the success of its banking sector.

First, nearly one million UK consumers are employed by banks, according to the British Bankers' Association.

It is a racing certainty that, without the jobs that a profitable banking sector brings, the UK wouldn't be the fourth largest economy in the world.

"Our banking sector is world class and a model for nations everywhere," Mr Capon said.

The UK banking sector pays a third of the corporation tax collected by the Treasury.

Without this cash the government would find it very difficult to increase spending on schools and hospitals.

In addition, the success story of the UK banking sector benefits people through their pension.

The top of the FTSE 100 index of leading shares is heavily populated by banks and their continued health boosts pension funds.