The Financial Conduct Authority (FCA) has called the top bankers from Natwest, Barclays, HSBC, and Lloyds to discuss the pricing of cash savings and the support and value provided for customers. Sourced Capital has previously commented on this topic when the Bank of England raised the Base Rate to 5%, highlighting the impact it has had on savers.

In our recent newsletter, Derek Pratt, Sourced Capital’s Commercial Director explained “Savers should not simply expect that they will see incremental increases on their savings account that match the base rate changes – this is far from guaranteed. It can pay (literally) to shop around and seek out the best terms available that match with your requirements relating to accessibility and risk profile.”

Recognising the challenges faced by consumers during this cost-of-living crisis, the FCA has called upon financial institutions to provide necessary support and maintain a fair pricing strategy for customers. This unified approach was agreed upon during a recent roundtable discussion, hosted by the Chancellor. The FCA is dedicated to ensuring that the cash savings market adequately supports savers in benefiting from higher interest rates; they are encouraging proactive measures to assist customers in transitioning to high-interest rate products that may be more suitable as they believe not enough value has been given to consumers to aid in informed decisions.

In a recent article, Nikhil Rathi, Chief Executive of the FCA, emphasised the organisation’s commitment to consumer welfare. Through collaborative efforts with financial firms, the FCA has already provided £47 million in compensation to over 195,000 customers facing financial hardship. The introduction of new rules has resulted in savings of nearly £1 billion in overdraft charges. Furthermore, the FCA is diligently working to ensure that the commitments made by firms regarding mortgages are implemented promptly.

The FCA aims to hold banks accountable for the provision of easy-access savings rates, especially considering the recent surge in interest rates and the financial strain felt by constituents across the UK. By prioritising customer benefits, ensuring fair pricing, and improving communication about interest rates, the big four banks can contribute to a stronger and more supportive financial landscape for savers across the nation.