FCA sets out saving rates expectations

Thanks to preparations for the Consumer Duty, which comes into force at the end of this month (31 July), the regulator said it has seen positive action being taken by those in the sector to improve rates, but now wants to see that progress accelerate.  

As part of the discussions, it explained how it wants to see a competitive market with “fair value” retail banking products – with banks helping consumers, while also saying the Consumer Duty will set a new standard for firms from the end of July – including on savings rates.  

Those in attendance, meanwhile, recognised they needed to do more to help their consumers access the best rates – with the FCA acknowledging there’s a need for further guidance.  

Following the meeting, David Postings – chief executive of industry body UK Finance – said: “UK Finance and a number of our members had a constructive meeting with the FCA where we discussed a range of issues in relation to savings. 

“The savings market is competitive, with a wide range of different accounts available to help people with their individual saving needs. We always encourage customers to shop around for the type of account that best suits them.  

“We look forward to continuing to work with the regulator on this important topic.”