2020 has been a wild ride for most investors, and a new study indicates the relationship between investment companies and their customers has taken a hit.
A report just released by the American Customer Satisfaction Index (ACSI) Finance, Insurance and Health Care Report indicates that most major U.S. investment companies have seen their ratings from customers decline in the last year, some as much as 5%.
Report: Schwab and Vanguard Tops Among Customers
The report is based on interviews with 44,442 customers between October 9, 2019, and September 25, 2020.
Here are some key findings from the report concerning online investment companies:
- While Charles Schwab and Vanguard continue to tie for first place, they do so with lower scores than last year.
- All companies in the survey lost some points in this year’s survey except for Merrill Edge (Bank of America).
- Since ACSI started rating investment companies in 2017, it says customer satisfaction has suffered a net loss of 5%.
Let’s look at all the scores:
These Investment Companies Have the Best Customer Satisfaction
|Investment Company||2020 Score||% Change from a Year Ago|
|Merril Edge (Bank of America)||75||1%|
|Internet Investment Services (Average)||78||-3.7%|
See ACSI’s full Finance, Insurance and Health Care Report.
You might assume that the coronavirus pandemic has something to do with the scores. But the ACSI report says, “… the pandemic alone did not drive the entire wave of dissatisfaction. Instead, it amplified trends already present in the earlier portion of the survey period.”
If you’re a beginner who is considering working with an investment company, don’t let the dips in customer satisfaction scare you from finding a place to put your cash so that it can go to work for you.
Money expert Clark Howard advises that you do research on the firms that interest you, paying particular attention to the fees they charge.
Want to know more about how to choose a good place for your money? Here’s Team Clark’s guide to the best investment companies.