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.
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