Regulator to investigate savings market - Savings - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Regulator to investigate savings market

Regulator to investigate savings market

Category: Savings

Updated: 10/09/2013
First Published: 10/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Financial Conduct Authority (FCA) has announced plans to investigate the UK's cash savings market.

The savings review will look at a range of issues, including the effects of introductory bonus rates that are offered to new customers on some savings products, which the FCA calls 'teaser rates', as well as analysing how often customers switch their savings accounts.

The UK's savings market is worth £1 trillion. The regulator said the study will form part of the next stage of its review into the financial services industry.

It said its intention is to assess what it can do to ensure savings providers offer customers the best returns possible and provide information that adequately meets their needs.

"Promoting effective competition and ensuring that markets work well for consumers is a key objective for the FCA," said chief executive Martin Wheatley.

"We will be undertaking a programme of work and research that will enable us to have a better understanding of how the markets are working and the dynamics that drive both them and the decisions that consumers make.

"In looking at cash savings, we will examine an area that affects most people and see if there is action we need to take.

"We know that switching rates are low for financial services products and savings accounts are no exception. Even when people do switch their accounts, they are twice as likely to go with their existing provider than move to the offering of a competitor."

What Next?

Find the best savings rates

Find the best bank account for you

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.