Banks will be banned from quietly cutting interest rates on cash savings accounts as part of proposals meant to help consumers pocket an extra £260m a year. The Financial Conduct Authority’s changes would still allow banks to offer a range of introductory interest rates to attract new customers. However, lenders would then have to offer a single rate for all easy-access cash savings accounts after 12 months. “This will prevent firms from gradually reducing interest rates over time and make them compete for all their customers. The FCA has estimated that savers will be handed an extra £260m a year in higher interest payments as a result.

Source: The Guardian January 09, 2020 12:45 UTC