FCA announce worst savings accounts

18 July 2016
FCA announce worst savings accounts

The UK financial regulator, the Financial Conduct Authority, have named the worst savings accounts.

Some are paying between 0.01% and nothing when it comes to interest.

The FCA looked at 32 providers, and found that the Post Office paid no interest at all on some open and closed accounts in April 2016.

They also found that Danske Bank and Ulster Bank paid a paltry 0.01% on some of their easy access cash savings accounts. Over at HSBC and First Trust Bank, they paid 0.05%.

"In a well-functioning market, providers should be competing to offer the best possible deal to consumers," said Christopher Woolard, director of strategy and competition at the FCA. "Our Sunlight Remedy data shows that some consumers could be better off by opening a different account."

By the end of 2016, the FCA will require banks to provide key information in a summary box, which is hoped will help consumers compare savings accounts in a better way.

It should also help people see when introductory rates are finished, which may have lured you into signing up with one.

The Competition and Markets Authority have reviewed the banking industry, and would like to see an online bank account comparison site being set up, which banks should co-operate with.

TOPICS:   Banking

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