FCA sets out expectation for fair and competitive saving rates

The regulator has called for further action to be taken to ensure customers have access to the best savings rates amid the ongoing cost of living crisis.

The FCA recently held a meeting which builds on work they have been doing over several months – to monitor the savings markets and the decisions made and have now challenged firms where their decision making has been slow. The regulator is taking action to ensure customers are offered fair and competitive saving rates. as rising interest rates and prices impact the cost-of-living.

Through preparation for the new consumer duty, which requires firms regulated by the FCA to put consumer interests at their heart, positive action by banks and building societies is becoming more apparent when it comes to improving their rates, as well as them ensuring their customers are benefiting from better value products. The FCA are now calling for this progress to accelerate. With customers switching their savings products to those with higher rates becoming more common practice, the FCA also continue to urge savers to shop around to make sure they’re getting the best deal.

The regulator wants to see a competitive market with fair value retail banking products along with banks helping consumers to access them. During the meeting, the topic of how the FCA’s consumer duty will set a new standard for firms from the end of July, including on savings rates was discussed and that expectation was then set out to bank and building society leaders.

Those in the room recognised that they needed to do more to help their consumers access the best rates and the FCA recognise there is a need for further guidance, and will continue their focus on this.

The FCA have previously committed to reporting at the end of the month on how the savings market is supporting savers to benefit from higher interest rates and they will set out then whether further steps are needed.