Banks and building societies will be named and shamed if they pay the lowest savings rates as the City watchdog looks to highlight firms that pay poor interest to longstanding customers.<\/p>\n
From next year banks will have to make it clear how much interest savers are paid on accounts and tell them if rates drop, such as when teaser rates end, under new rules being introduced by the Financial Conduct Authority.<\/p>\n
Christopher Woolard, director of strategy and competition at the FCA, said: \u201cIn a good market, providers should be competing to offer the best possible deal. Consumers should expect the information they need to shop around to be clear and easy to understand.<\/p>\n
\u201cWhen they wish to move accounts, they should be able to do so with the minimum of fuss.\u201d<\/p>\n
In January, the FCA\u2019s investigation concluded that millions of savers were getting a raw deal, particularly from the big High Street banks.<\/p>\n
It found that those with older savings accounts tended to be left earning less interest than new customers. In many cases, their rate was lower than the Bank of England\u2019s base rate.<\/p>\n
The FCA has also vowed switching savings accounts will become quicker and easier. Part of this is working with the industry to deliver seven day switching for the vast majority of cash Isa transfers from January 2017.<\/p>\n
It is also setting out a new rule that requires firms to provide a prompt and efficient service so that a customer can switch to a better account offered by the same firm.<\/p>\n
The FCA has also said complex jargon needs to be simplified and easier information is needed in order to compare accounts.<\/p>\n
It comes as savings rates have seen a small upwards movement in recent months, especially in the fixed-rate category.<\/p>\n
The best buy one-year fix, for example, has risen from 1.75 per cent six weeks ago, to 2.07 per cent from Paragon Bank today.<\/p>\n
The FCA is seeking feedback on the proposals and is expected to confirm finalised rules later this year. The majority will come into force in 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"
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