INTERESTing Times

 

One of the downsides of historically low interest rates is the impact it has for savers, who have been hit the hardest since the banking collapse. However, a new initiative from The Financial Conduct Authority (FCA) may inspire some positive movement for savers.   

 

To try to emphasise the importance of ‘shopping around’, the FCA has published a name-and-shame list as part of its review of the savings market. The results aren’t pretty reading:

 

- 6 organisations offer rates on cash of 0.05% or less.

 

- A further 6 banks or building societies offer rates as low as 0.1%.

 

Some of the worst offenders were:

 

Danske Bank 0.01%

Progressive Building Society 0.01%

Ulster Bank (RBS) 0.01%

HSBC 0.05%

First Trust Bank 0.05%

First Direct 0.05%

 

The initiative will see the FCA publish the list of poor interest rates every six months for the next year and a half. The FCA also 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.

 

They don’t get too much positive press but the initiative from the FCA can only be a good thing for consumers and increase competiveness in the savings arena.

 

It’s a double win.