The Financial Conduct Authority (FCA) is taking action against banks and building societies for offering disproportionate interest rate rises to savers. The FCA’s 14-point plan aims to ensure fair savings rates and improved communication with customers.
Facts
- The FCA is cracking down on banks and building societies offering disproportionate interest rate rises to savers.
- The FCA has a 14-point plan to ensure fair savings rates and effective communication with customers.
- Analysis showed that the interest rate rise for easy access accounts was not proportionate, with only 28% of the base rate passed through by nine major savings providers.
- Notice and fixed term deposits, on the other hand, saw 51% of the base rate passed through by the same nine providers.
- Larger firms are offering lower interest rates compared to smaller competitors.
- Firms have until the end of August to justify their savings rates, especially for those with the lowest rates.
- Firms are required to improve communication with customers and demonstrate the effectiveness of their communication campaigns.
- The FCA collaborates with the Information Commissioner’s Office to inform customers about the best available rates, even for those who have opted out of marketing.
- Sheldon Mills, the FCA’s executive director of consumers and competition, emphasizes the need for a competitive cash savings market that delivers better deals for savers.
