FCA Aims to Simplify Savings Market

The UK based Financial Conduct Authority is proposing new rules to simplify the savings market; banks will be able to offer new customers multiple introductory rates for the first 12 months then choose a single rate for easy access accounts and easy access cash savings Isas; Christopher Woolard, FCA Executive Director of Strategy and Competition, said to the FT: “Competition is not working well for many of the 40m consumers with easy access savings accounts and we want that to change.”; the changes are meant to help savers better understand rates and generate better returns which are down to 0.59 percent from 0.64 percent a years ago; Jenny Ross, Editor of consumer group Which? Money, tells the FT, “Switching is complicated by firms offering a huge array of products at different rates, often with unclear pricing information, so it’s right that the regulator is intervening with the introduction of a single easy access rate.” Financial Times

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