FCA names providers with lowest savings rates

"In a well-functioning market, providers should be competing to offer the best possible deal to consumers."

Some of the lowest rates offered were from Ulster Bank, Co-op and First Trust Bank.

The full list is available here.

The data is part of the FCA’s ‘sunlight remedy’, which aims to shine a light on firms’ strategies towards their long-standing customers.

From December 2016, firms will have to provide easy-to-understand key information in a summary box to help consumers compare savings accounts, as well as clearly reminding consumers about changes in interest rates or the end of an introductory rate. Firms will also be required to provide a quicker and easier switching process.

Alongside this, the FCA has also published findings of a series of trials with 130,000 consumers that explored ways to encourage consumers to switch to better savings accounts.

The FCA trialled a number of remedies, including digital reminders, a return switching form, and a switching box – giving information on the potential financial gains from shopping around and switching, prompting customers to consider their choice of account and provider.

The finding of the trials showed that digital reminders via SMS and email were positive, but the switching box and the return switching form only stimulated switching within the same bank and did not increase switching to better accounts offered by other providers.

Following the trial findings the FCA says it will investigate alternative options to encourage more shopping around.

Christopher Woolard, Director of Strategy and Competition at the FCA, said: “We said that one of our priorities this year will be focused on the treatment of long-standing customers. Our new rules, coming into force at the end of the year, will help consumers get the facts they need to make an informed decision about what to do with their savings.

“In a well-functioning market, providers should be competing to offer the best possible deal to consumers. Our sunlight remedy data shows that some consumers could be better off by opening a different account.”