Home Finance FCA to review value of 9 banks’ savings products

FCA to review value of 9 banks’ savings products

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FCA to review value of 9 banks’ savings products

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The FCA has asked nine banks and savings providers to provide assessments on what value their savings products offer after concerns about value for money.

The move follows recent concerns that, “not all savers are getting good deals,” the FCA said today.

The FCA will publish an update in the autumn, including details of any steps it may take, it said.

The nine banks are believed to be the nine major banks reviewed in July as part of the FCA’s Cash Savings Review. The ‘Big 9’ banks are: Lloyds Banking Group, HSBC, NatWestGroup, Santander UK, Barclays, Nationwide Building Society, TSB Bank, Virgin Money UK and The Co-operative Bank.

Some critics and consumer organisations have accused banks and savings providers of being too slow to raise savings rates in line with the rapid rise in the Bank of England base rate. There have also been concerns that some savers have been left ‘trapped’ in low paying savings and bank accounts.

The review follows the introduction of the Consumer Duty in July. The Duty requires firms to ensure the products and services across their ranges deliver “fair value” to their customers and act accordingly if they do not. 

The FCA said today in a statement: “We will now analyse the information banks and building societies have provided. We will publish an update later this autumn, including any steps we might take if we identify areas of concern. In July 2023, we outlined a 14-point action plan to ensure people can access a competitive savings market. We are making progress on each of these and will provide a separate update this autumn.”

The FCA added that after publishing its action plan it had seen greater availability of higher interest rates in both term limited and easy access accounts. It has also seen moves by some savings providers to align rates on accounts currently on sale and those now closed.

The FCA said it “welcomed” the development of a more competitive market.




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