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New measures to make savings accounts easier to understand
The FCA has published new data on savings interest rates and announces new rules coming into effect
The Financial Conduct Authority (FCA) is undertaking work to “shine a light” on firms’ strategies and deals for their long-standing savings customers. The savings market in the UK is worth over £700 billion.
New rules have come into force which means that banks and other savings bodies will have to help consumers compare savings accounts by providing easy-to-understand key information in an upfront summary box.
They will also have to clearly remind consumers about the end of an introductory interest rate or any changes in their rates.
Once a customer is aware that they may not be getting the best rates on their savings, they may wish to switch firms. The FCA has said that firms will be required to provide a quicker and easier switching process.
The new measures are a response to the FCA’s recent study into competition in the cash savings sector, which found that for many consumers, competition in the sector was not working as effectively as it could do.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said:
“The new rules coming into force today will help consumers get the facts they need to make an informed decision about what to do with their savings.
“In a well-functioning market, providers should be competing to offer the best possible deal to consumers…One of our regulatory priorities is the treatment of long-standing customers and we want to see all customers benefit from competition and innovation in financial markets.”