Today the FCA published the discussion paper 'Price discrimination in the cash savings market.'
Brian Morris, Head of Savings Policy at the BSA commented:
“The BSA welcomes the FCA’s discussion paper on Price discrimination in the cash savings market.
“The paper notes that building societies ‘tend to offer higher interest rates than banks already and many have relatively small back-books’. This is reinforced in recent independent Savings Champion data, which revealed that over 73% of building society savings accounts pay a higher interest rate than Bank Rate, compared with only 54% of banks. In a similar vein, the BSA collated data that revealed building society savers earned £775 million more in interest than those who saved with a big bank in 2017.
“Although savings rates are determined by a number of factors, the Bank Rate being just one of them, it is interesting to see concepts such as a basic savings rate being discussed.
“Finally we urge savers to shop around when opening a new savings account, and don’t be afraid to switch for a better rate where possible to help make your money work harder.”