Banks pass on less than 30pc of interest rate rises to savers, FCA finds

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City watchdog will name and shame financial institutions that offer the lowest savings rates

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01 Aug 2023

Banks will be named and shamed by the financial watchdog after finding that less than 30pc of interest rate rises have been passed on to savers.

The Financial Conduct Authority (FCA) will publish a league table every six months of lenders’ easy access savings rates, ranking them from best to worst, and warned that it will take action if the worst offenders do not improve their offers to customers.

Under new consumer duty rules, which came into force on Monday, banks who provide the lowest interest rates in the market will be required to justify their positions by the end of August and if they are unable to do so, the FCA said it will take action.

It comes as the Bank of England is poised to raise interest rates to a fresh 15-year high on Thursday in a bid to tame stubbornly high inflation.

Following a review, the regulator found Britain’s biggest saving providers only passed through 28pc of interest rate rises to their easy access deposits between