Savers need to switch for better rates, says UK financial watchdog

The Post Office, Ulster Bank and Danske Bank were among the providers found to be paying Britons interest rates of 0.01% or less, according to new findings from the UK’s financial watchdog.

The Financial Conduct Authority’s figures, showing the lowest interest rates offered by a sample of 32 easy-access cash savings and ISA providers, highlight how savers who leave funds languishing in accounts after introductory “bonus” deals end are punished with paltry rates.

From December, an FCA initiative will force banks and building societies to provide clearer data to compare rates and accounts, and to inform customers when introductory “bonus” deals end or rates change.

The watchdog claims that switching accounts will also become quicker and easier.

“Our data shows that some consumers could be better off by opening a different account,” Christopher Woolard, FCA director of strategy and competition, said.

“In a well-functioning market, providers should be competing to offer the best possible deal to consumers. Our new rules… will help consumers get the facts they need to make an informed decision about what to do with their savings.”