FCA Cash Savings Report
Today the FCA published their second report into interest rates on cash savings accounts. Named Sunlight Remedy, the report first published in January 2015 aims to shine a light on the rates not prominently displayed by banks, a key insight into a firms’ strategies towards their longstanding customers.
The report looks at the lowest rates paid by firms across all of their easy access cash savings accounts and easy access cash ISAs.
The initial study found that accounts that were opened a long time ago pay lower interest rates than those opened more recently, leaving many existing customers out of pocket. Despite this they found that a large number of customers do not move money between accounts even within their own bank.
These findings have been supported by the most recent report that shows of the lowest rates paid by banks, with a median interest rate is just 0.25% pa on easy access cash saver accounts and 0.7% pa on ISAs.