Watchdog Urges Major Banks to Improve Rates on Instant Access Accounts
- Financial Conduct Authority (FCA) calls on banks to enhance savings rates
- Only 28% of Bank of England’s base rate increases are passed on by banks
The Financial Conduct Authority (FCA) has announced plans to take action against banks that fail to pass on rate rises to savers, putting additional pressure on the industry.
Leading banks and building societies, including Barclays, HSBC, and Nationwide, have been urged by the FCA to improve the savings rates offered on their instant access accounts.
A study conducted by the FCA revealed that, on average, only 28% of increases in the Bank of England’s base rate were passed on by lenders between January last year and May of this year.
The FCA has given banks with the lowest rates until the end of August to explain how their savings products align with the new Consumer Duty, which requires “fair outcomes” for customers.
If banks are unable to comply, the FCA has stated that it will take action.
The new rules overseen by the UK’s Financial Conduct Authority are aimed at preventing rip-offs and unexpected charges
These measures are part of the FCA’s 14-point plan to hold lenders accountable.
Chancellor Jeremy Hunt has been exerting pressure on banks to pass on higher interest rates to savers or provide clear information on the best offers available.
To combat soaring inflation, interest rates have risen from 0.1% in December 2021 to 5% in July 2023.
The Bank
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
