Hey savvy savers! Have you noticed that your savings account interest rates haven’t been keeping up with the Bank of England’s increases? Well, we have some news for you. The Financial Conduct Authority (FCA) recently contacted banks’ boards over their failure to pass on interest rate hikes to customers. In this blog post, we’ll dive into what led the FCA to take action and explore what this means for your savings. So buckle up and let’s get saving!
The Financial Conduct Authority (FCA) is contacting the boards of major banks over their failure to pass on recent interest rate increases to savers
The Financial Conduct Authority (FCA) is contacting the boards of major banks over their failure to pass on recent interest rate increases to savers. This follows reports that some banks have been slow to increase rates on savings accounts, despite the Bank of England raising interest rates twice in the past year.
The FCA is concerned that savers are not getting a fair deal from their banks and is asking for a meeting with the board members of major banks to discuss this issue. This is a significant step by the regulator and shows that they are taking the concerns of savers seriously.
It is important to remember that when interest rates go up, it does not automatically mean that savings rates will increase by the same amount. Banks are free to set their own rates and there can be a delay before any changes are made. However, if you feel your bank is not passing on rate rises in a timely manner, then you should contact them to discuss this.
If you are unhappy with the response you receive, then you can make a complaint to the FCA.
The FCA is concerned that banks are not doing enough to help savers, who have seen their returns on savings plummet in recent years
The Financial Conduct Authority (FCA) has written to the chairmen of Britain’s biggest banks, urging them to do more to help savers. The regulator is concerned that banks are not doing enough to help savers, who have seen their returns on savings plummet in recent years.
In a letter sent to the chairmen of Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, RBS and Santander UK, the FCA said it wanted to see “improvements in the communicative approach taken by firms towards their customers”.
The letter comes after the Bank of England raised interest rates for the first time in a decade in November 2017, but most banks failed to pass on the full 0.25% increase to customers. This left many savers feeling short-changed and frustrated.
The FCA said it had contacted banks’ boards because it was “disappointed” with how they had handled the interest rate rises. The regulator added that it was “particularly concerned” about how some banks had communicated with their customers about the decision not to pass on the full rise.
The FCA has called on banks to review their processes for setting interest rates on savings accounts and communicating with customers about changes. It also wants banks to provide more information on how they make decisions about interest rates, so that customers can make informed choices about where to save their money.
In its letter, the
The banks have been slow to respond to the FCA’s concerns, and the regulator is now taking action
The Financial Conduct Authority (FCA) has written to the chairmen of Britain’s biggest banks and building societies, expressing its “disappointment” that some have been slow to pass on interest rate rises to savers.
The regulator is now contacting the banks’ boards directly to discuss the issue and “set out expectations for the future treatment of customers”.
In its letter, seen by the BBC, the FCA says it wants firms to take “swift and appropriate action” to ensure savers get a fair deal.
The regulator has been investigating the issue since March, when the Bank of England raised interest rates for the first time in more than 10 years.
At that time, some banks immediately increased rates on their savings accounts while others lagged behind. The FCA says this has led to a “significant difference” in the returns received by savers.
The regulator is now asking firms to provide evidence that they are treating their customers fairly. It says it will take action if it finds that firms are not meeting its expectations.
The FCA’s actions could lead to higher interest rates for
The FCA’s actions could lead to higher interest rates for savers, as banks may need to set aside more money to cover the cost of any mis-selling claims. This could mean that savers see their interest rates rise in order to cover the costs of the FCA’s investigation.
