Many people are feeling the squeeze from rising interest rates
and prices, so it is more critical than ever that they are
offered fair and competitive saving rates. We held a
constructive meeting today, which builds on work we have been
doing over several months – to monitor the savings markets and
the decisions made. We have challenged firms where their decision
making has been slow.
Through preparation for our new consumer duty, which requires the
firms we regulate to put consumer interests at their heart, we
have started to see some positive action by banks and building
societies to improve their rates, and to ensure their customers
are benefiting from better value products. We now want to see
that progress accelerate. We are also increasingly seeing
customers switching their savings products to those with higher
rates. We continue to urge savers to shop around to make sure
they’re getting the best deal.
We want to see a competitive market with fair value retail
banking products – and with banks helping consumers to access
them. We discussed how our consumer duty will set a new
standard for firms from the end of July, including on savings
rates. We set out that expectation to bank and building society
leaders in today’s meeting.
Those in the room recognised that they needed to do more to help
their consumers access the best rates. We too recognise there is
a need for further guidance, and will continue our focus on this.
We have previously committed to reporting at the end of the month
on how the savings market is supporting savers to benefit from
higher interest rates. We will set out then whether further steps
are needed.
