• Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more
 

Savers getting raw deal from big banks, says FCA

Millions of savers are getting a raw deal, particularly from the big High Street banks, the Financial Conduct Authority (FCA) has concluded.

In many cases, the interest rate on their accounts has been as little as 0.5% - the same as the Bank of England's base rate.

Savers should be given clearer information and helped to switch to better accounts, said the FCA.

But the City regulator stopped short of banning bonus rates.

Such rates operate for a limited period, and are used to tempt savers in.

The FCA also said that 80% of easy access accounts have not been switched in the past three years.

Furthermore, those who have older savings accounts tend to earn less interest than those who have opened them more recently.

Transparency

The big High Street banks - "large personal current account providers"- are singled out for particular criticism.

The FCA said they attracted the most money into easy access accounts, even though they offer the lowest interest rates.

"In a good market, firms should be competing to offer the best possible deal and consumers should have the information they need to help them shop around," said Christopher Woolard, the FCA's director of strategy and competition.

As a result of its investigation, the FCA is proposing:

  • Providers should be more transparent about reductions in savings rates over time
  • Savers should be told the lowest interest rate that any customers are getting on a particular account
  • There should be clearer, more timely information to help savers compare, and then switch, their accounts
  • Consumers should be able to view and manage different accounts in one place
  • A reduction in the 15 day switching time for cash Individual Savings Accounts (ISAs).

The FCA will now consult on its plans, until 18 February.

Source:  BBC.co.uk

Sam: 20th Jan 2015 14:34:00

 

Latest News

Lenders relax maximum mortgage age
Lenders relax maximum mortgage age If you're an older homeowner, the last few years may have been challenging if you were looking to remortgage your property.

Read More >>

Drawdown investors remain optimistic
Drawdown investors remain optimistic The onset of the pension freedoms gave retirees more choice than ever over how to spend their pension pot, and many are making the most of that flexibility by opting for income drawdown, whereby their pension savings remain invested in the stock market. Yet this in itself can pose risks, particularly given how volatile the stock market can be, but luckily, investors don't seem to be put off.

Read More >>

Equity release lending hits record £3.6bn
Equity release lending hits record £3.6bn 2018 proved to be another record year for the equity release sector, with latest figures revealing that retired homeowners released £3.6bn in property wealth over the year, the highest annual total ever seen – and by all accounts, 2019 could go even better!

Read More >>

Motivation to remortgage at 11-year high
Motivation to remortgage at 11-year high The financial incentive for mortgage borrowers reaching the end of their current fixed rate deal to remortgage to a new deal has soared to an 11-year high.

Read More >>

What's coming up in 2018....

Read More >>

See all News...
  • Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more