Banks, retailers and travel companies top the list for highest customer satisfaction levels, according to a new survey.

First Direct is the nation's top company for good customer service, the latest UK Customer Satisfaction Index reveals.

It is followed by retailer John Lewis, Hayes Travel, Nationwide Building Society and Jet2Holidays.  

First Direct scored 87 out of 100 in the customer satisfaction index and was followed by John Lewis which scored 86.4 and Hays Travel 86.2 while Nationwide and Jet2Holidays scored 86.1 and 85.8. 

The UKCSI is the country's largest study of customer service performance and is published every six months by the Institute of Customer Service. 

It tracks 13 sectors across the UK economy and is based on 60,000 survey responses. 

The most improved brands for customer service are insurer PetPlan, up 10.6 points year on year, and travel website On The Beach up 10.4 points. 

The survey of found that customer service levels are recovering from a low ebb, with the third consecutive rise, reaching 78.2 (out of 100), a 2.1-point increase year-on-year.

Though consumer confidence has been knocked by economic uncertainty, the UKCSI found more than a third of UK shoppers are now willing to spend more for excellent service, up from 31 per cent last year. 

Shoppers are more optimistic about the immediate prospects for their own financial well-being than they are for the UK economy

Two in five consumers believe their personal financial circumstances will be better in 12 months' time while only a third believe that the economy will improve in 12 months' time.

Food retailers with above-average customer service, such as M&S, continue to see strong sales growth. For banks and building societies, better service typically translates into current account gains.

Banks including First Direct and Nationwide also hand out regular financial incentives to attract new customers. 

First Direct is currently offering £175 to new current account customers while Nationwide has a yearly 'Fairer Share' offer where it pays eligible members £100 if they meet certain criteria when it announces its profits at the end of its financial year.

Feeling they are getting good value has become more important to customers over the last 12 months when it comes to customer satisfaction levels and was cited by almost a third of consumers in the survey.  

Jo Causon, chief executive of the Institute, says: 'Service-led brands are doing well, and their advertising messages increasingly home in on the superior service they offer, helping reinforce their competitive advantage when they follow through.

'Consumers are feeling unsure about the UK economy but more optimistic about their own finances - so they are spending, but being selective about where. 

'The best-performing organisations understand the importance of keeping promises to customers, and customers are taking note.'