FCA to force banks to say when they slash savings rates
Banks and building societies are going to be forced into telling customers when they cut interest rates, say the Financial Conduct Authority. The FCA have started publishing six-monthly details of the lowest interest rates, as they try to encourage competition.
By publishing these figures, they hope that consumers will be able to see which banks are being rip-offs, and it is hoped, they'll shop around more as a result.
We all know that these institutions offer market-leading rates and then, once you're on-board with them, they move the goalposts, leaving millions with no-returns on their savings. Those who are already clued up, will switch accounts every year to get the best returns, but the FCA want everyone to be able to do this.
With some accounts paying as little as 0.01%, giving customers 10p a year on every £1,000 they save, this is clearly something that needs to happen. Of course, the publishing of these figures will hopefully give banks and building societies a kick up the arse too, and offer better deals that work out long-term.
The regulator will be highlighting those who have the lowest paying accounts.
The FCA call this a 'sunlight remedy' because "we are shining a light on interest rates that are not prominently displayed, but that may be earned by some customers".
The FCA’s table showed that accounts from Skipton, Danske Bank, Progressive Building Society, and Ulster Bank were particularly poor. Paying out 0.1% were companies including Barclays, Bank of Scotland, Lloyds, Halifax, Post Office, and Santander.
Have a look at the table here.