empty
 
 

2018.07.2508:45:00UTC+00UK Financial Regulator Mulls Basic Interest Rate For Savings Accounts

The Financial Conduct Authority suggested introducing a basic savings rate for longstanding bank customers.

In the Discussion Paper, the FCA set out a range of options to address issues faced by longstanding customers.

The financial regulatory body was concerned that interest rates that longstanding savers receive are generally lower than those received by customers who shop around.

The Discussion Paper sought input on how to address the harm caused by this price discrimination.

The basic savings rate option would apply to all easy access cash saving accounts and easy access cash ISAs after they have been open for a set period of time, such as a year, FSA said.

Christopher Woolard, Executive Director of Strategy and Competition at the FCA said, "Providers can take advantage of high levels of customer inaction to pay lower interest rates to longstanding customers."

"While many customers have valid reasons for not shopping around, providers must still treat them fairly, while maintaining competitive rates for those who do," added Woolard.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback