FCA publishes update on the cash savings market

Following the issuance of a 14-point action plan as regards the practices of banks and building societies concerning the (low) interest rates they are paying on saving accounts (EventID 22488), the Financial Conduct Authority has published an update in this matter. Fortunately, the FCA has observed a trend towards passing on the high(er) UK base interest rate to consumers and encouraging savers to switch to accounts offering (better) interest rates. In fact, the FCA has noted a reduction in the volume of cash held in non-interest bearing accounts and easy access accounts and a significant increase in fixed-term and notice accounts.
However, the FCA states that it will continue to closely monitor the situation and expects financial institutions to keep up their efforts to encourage savers to move to higher interest accounts. Likewise, the FCA encourages savers to shop around and compare rates to ensure sufficiently high interest payments.