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FCA list of savers rates sees some as low as 0.01% | FCA list of savers rates sees some as low as 0.01% |
(35 minutes later) | |
Several UK banks and building societies are offering savers returns as low as 0.01%, the City regulator has revealed. | Several UK banks and building societies are offering savers returns as low as 0.01%, the City regulator has revealed. |
The Financial Conduct Authority (FCA) published a name-and-shame list, as part of its review of the savings market. | The Financial Conduct Authority (FCA) published a name-and-shame list, as part of its review of the savings market. |
Six organisations, including HSBC, offer rates on cash of 0.05% or less, even before tax is taken into account. | Six organisations, including HSBC, offer rates on cash of 0.05% or less, even before tax is taken into account. |
A further six banks or building societies, including Santander, offer rates as low as 0.1%. | A further six banks or building societies, including Santander, offer rates as low as 0.1%. |
The FCA pointed out that the institutions named do offer higher returns on other accounts, and urged savers to switch to better deals. | The FCA pointed out that the institutions named do offer higher returns on other accounts, and urged savers to switch to better deals. |
The return on cash accounts available in-branch was the poorest, followed by Individual Savings Accounts (Isas) in-branch. | The return on cash accounts available in-branch was the poorest, followed by Individual Savings Accounts (Isas) in-branch. |
For those with £1,000 to invest, some will therefore be getting as little as 1p a year in interest. | |
Among Isa accounts, the lowest interest rate was 0.1%, offered by Santander. Another ten banks offer 0.5% or less. | Among Isa accounts, the lowest interest rate was 0.1%, offered by Santander. Another ten banks offer 0.5% or less. |
The FCA is calling it "sunlight data" - as the figures shine a light on the lowest rates being offered. | The FCA is calling it "sunlight data" - as the figures shine a light on the lowest rates being offered. |
As a trial, the list will be published every six months for the next year and a half. | As a trial, the list will be published every six months for the next year and a half. |
At the same time as publishing the list, the FCA announced new measures to force firms to provide clearer information on interest rates. | At the same time as publishing the list, the FCA announced new measures to force firms to provide clearer information on interest rates. |
From December 2016, banks and building societies will have to tell consumers when interest rates change, and when introductory offers run out. | From December 2016, banks and building societies will have to tell consumers when interest rates change, and when introductory offers run out. |
The new rules will include: | The new rules will include: |
"With many savers never switching because they don't think it will make a difference, our rules will help consumers get the information they need to shop around," said Christopher Woolard, director of Strategy and Competition at the FCA . | "With many savers never switching because they don't think it will make a difference, our rules will help consumers get the information they need to shop around," said Christopher Woolard, director of Strategy and Competition at the FCA . |
"In a good market, providers should be competing to offer the best possible deal and should a consumer wish to move accounts, they should be able to do so with the minimum of fuss." | "In a good market, providers should be competing to offer the best possible deal and should a consumer wish to move accounts, they should be able to do so with the minimum of fuss." |