A PYMNTS Company

UK: FCA seeks to boost competition in savings accounts

By  |  December 8, 2015

The Financial Conduct Authority revealed accounts from 32 providers paying poor rates of interest to long-standing customers after findings at the start of the year showed £160 billion of funds were earning the same or less than the 0.5% Bank of England base rate.

It exposed cash savings accounts and individual savings accounts that pay as little as 0.01%, while accounts with HSBC and First Direct that are now closed to new customers and cannot be managed in a branch pay zero interest.

Experts said the results are a “wake-up call” to savings providers who leave customers in zombie accounts that pay paltry returns – effectively leaving them out of pocket once inflation is taken into account.

The FCA said it wanted to “shine a light” on treatment of long-standing customers and encourage them to offer better value accounts.

Full content: Daily Mail

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.