FCA calls on UK banks to improve savings rates
The FCA said it wants to see 'a competitive market with fair value retail banking products', with banks helping customers to access them.
The regulator said it had «challenged firms where their decision making has been slow» and hosted a «constructive» meeting with bosses of high street banks yesterday (6 July) to discuss how the incoming Consumer Duty regulations will impact banks.
According to the FCA, this was the most recent development of its months-long campaign to monitor the savings markets, and the decisions were made as the market prepares for the new Consumer Duty regulations, which comes into effect at the end of this month.
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The regulator said it had started to see «some positive action by banks and building societies to improve their rates» but with many customers feeling the ongoing pressure from the cost-of-living crisis, it was «more critical than ever that they are offered fair and competitive saving rates».
According to the FCA, the banking bosses «recognised that they needed to do more to help their consumers access the best rates» and in turn it said «there is a need for further guidance, and will continue our focus on this».
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Commenting on the FCA's meeting with high street banks on savings rates, Harriett Baldwin, chair of the Treasury Committee, added: «As a committee, we have been questioning the high street banks on their poor savings rates all year, and it is clear that savers have been getting a raw deal for too long.»
She continued: «While it is welcome to hear the banks recognise further action is required, it is time to see an acceleration
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