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 0.5% or lower – 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.

The banking industry said the low interest rate environment was to blame.

The FCA said that 80% of easy access accounts had 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.

Despite its criticisms, the City regulator stopped short of banning bonus rates. Such rates operate for a limited period, and are used to tempt savers in.

How low can you go? The lowest rates on offer

Lender Account Instant access savings rate
Ulster Bank Easy Access Savings 0.01%
Airdrie Savings Bank Savings Account 0.04%
West Bromwich BS Century Saver 0.05%
Santander Instant Saver 0.10%
Clydesdale Bank Instant Saving 0.10%
Bank of Ireland Classic Saver 0.10%
Smile Easy Access 0.12%
Source: MoneySuperMarket

Source: Brian Milligan, Personal Financial Reporter, BBC News. To read the full article visit http://www.bbc.co.uk/news/business-30894086

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