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Banks May Be Force To Offer Minimum Interest Rates

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Banks could be forced to set a minimum interest rate on their savings accounts, the Financial Conduct Authority (FCA) has suggested.

Following attempts over many years by the Financial Conduct Authority (FCA) to force banks to tell their customers how to switch accounts, it has grown increasingly frustrated that its policy of at naming and shaming the ones paying the worst rates, has shown no clear signs of having any real impact.

So now it is looking at a more powerful tool to use against savings providers who exploit their customers. This isn’t the FCA reaching for the ultimate weapon of setting minimum rates itself, because each institution would still set its own Basic Savings Rate. However, the measure would prevent the least savvy savers being left behind and make it easier to compare what’s on offer. The FCA believes a Basic Savings Rate could enable customers jointly to earn up to £480m a year more than they currently do.

Read the full BBC News article here https://BBC Business News

Jasmine Lambert Chartered Financial Adviser in Southampton
Jasmine Lambert

Jasmine has been a qualified Financial Planner since 2008. She has also been a member of the Society of Will Writers since 2012. She is passionate about helping Clients build their wealth and achieve the financial lifestyle they desire. Her areas of expertise are that of Savings, Investments, Pensions and Retirement Planning.

Redwood Financial is one of the south’s leading Investments, Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning, Lasting Powers of Attorney, Probate, Pensions, Savings & Investments, we can advise on any situation.
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