Interactive Investor

FCA vs high street banks on savings rates

6th July 2023 18:47

by Myron Jobson from interactive investor

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interactive investor comments on the regulator's battle with the banks.

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Paltry savings rates offered by leading banks are a bitter pill to swallow for savers whose wealth is being eroded by a double whammy of inflation and rising borrowing cost.

“The Financial Conduct Authority (FCA) has attempted to coerce big banks into taking action by shining a light on the issue until it is handed power to take stronger action under the Consumer Duty framework, which comes into force at the end of July and will require banks to show their customers get a fair deal.

“However, any reprieve in cash savings rates is being drowned out by the stubborn persistence of high inflation - with the real value of savings remaining in the doldrums. Those who can afford to put money away for five years or more should consider investing for the potential of long-term inflation-beating returns that far outstrip savings rates.”

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