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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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.