Commenting on the FCA’s cash savings consultation paper Introducing a Single Easy Access Rate for cash savings Brian Morris, Head of Savings Policy at the BSA said:
“We support the FCA’s intentions to improve the outcomes for long-standing savers across the whole market, but are uncertain that the proposed single easy access rate for cash savings (SEAR) will deliver the desired result.
“The FCA note that building societies tend to offer higher interest rates to long-standing customers¹. The BSA has calculated that over the past three years building society savers have received £2.5 billion² more in interest than those in similar accounts with the big banks.
“The BSA and its members will now carefully consider the FCA’s proposals in their entirety and look to work with the regulator to achieve positive consumer outcomes. This includes continuing to encourage savers to shop around for the best accounts.”
- Hilary McVitty Tel: 0207 520 5926
- Amy McCluskey Tel: 0207 520 5927
Notes to Editors
- The FCA note that building societies tend to pay higher rates to long-standing customers at paragraph 3.71 of today’s consultation paper.
- The £2.5 billion figure is calculated using the weighted average of interest rates across the BSA’s sample of large building societies, and the Bank of England’s sample of Monetary Financial Institutions that contribute to the Bank’s Effective Rate statistics - which may include some building societies,. The three year period runs to the end of H1 2019
- Independent research from Savings Champion over the past 6 years has found that building societies have consistently paid higher rates to both new and existing savers than the big banks.