Banks May Be Force To Offer Minimum Interest Rates


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 Planner
Jasmine Lambert

Jasmine is the Managing Director and a Chartered Senior Financial Planner at Redwood Financial. She helps clients manage and grow their wealth and protect their estate. Jasmine also provides expert advice in our FREE Redwood Webinars, where you can learn more about Wills, Trusts and Estate Planning.

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