Defending the measly rates on their easy-access accounts, banks often point to their fixed-rate deals, which are typically much better. But not all savers can afford to stash away their savings for a year or longer.
Advisers typically advise keeping at least three months’ savings in an easy access account, in case of emergency.
At the end of this month the FCA will roll out its new Consumer Duty rules, requiring banks to show they are prioritising “good outcomes” for savers.
These rules should give the regulator more power to take action when firms are not delivering fair value to their customers.
Nikhil Rathi, chief executive of the FCA, said in a letter to the Treasury Committee published on Wednesday that the FCA will “monitor firms’ action to comply with the Duty” and take “enforcement action” where it is needed.
A spokesman for Lloyds Banking Group – which also operates Halifax and Bank of Scotland – said: “We offer a range of accounts customers can choose from depending on the flexibility they want, with our savings products offering upwards of 4.1pc for instant access, 5.5pc on fixed-rate accounts, and up to 6.25pc for our flagship monthly saver account.”
A NatWest spokesman said: “We continually keep our rates under review. We recently increased rates across our savings accounts including on our fixed rate accounts which now pay up to 5.9pc and our Digital Regular Saver pays 6pc.”
A spokesman for HSBC said it is “firmly focused” on supporting savers in the current environment and has increased interest rates on its savings accounts over a dozen times in just over a year.
It said: “Every savings product has seen its interest rate increase on multiple occasions during that time, supporting customers to start a positive savings habit and save towards longer term goals.
“We are also proactively reminding customers of the need to review their savings, highlighting products that might also be suitable for them and where they could benefit from a higher rate.”
A spokesman for Barclays said: “Following customer research, our savings range has been designed to help customers create healthy saving habits. This month we are targeting around 1.3 million customers to inform them of the accounts we have designed to play different roles in helping to achieve their savings goals.
“With just a few taps on the Barclays app, customers can open a Rainy Day Saver at 5pc and/or a Blue Rewards Saver at 3pc.”
