Good news for savers - but where's the detail ?

Consumerist

I've been looking through the Consumer Focus super complaint on cash ISAs and, on page 11, I came across this :-

The rules governing the communication of changes to interest rates paid on savings accounts changed substantially from 1 November 2009; banks have till 1 May 2010 to implement some of the changes. The intention of these changes is to remedy some of the most disreputable ‘bait pricing’ practices where customers are attracted to a product through temporary bonus rates of interest, which lapse leaving the saver on a low rate of interest.

I've had a look through the Payment Services Regulations 2009 but can't find any specific reference to savings accounts.

Does anyone know where the detail of these changes is to be found?

courtney22

they are held in a booklet that you have to be given when you open a new account so if u nip in to your local bank/building society you will be able to get a copy.
it highlights the new way savings are regulated timescales of when a customer should be told that there interest rate is dropping/increasing. Ive tried google for u but couldnt find the info you want, but its defintley all in booklet. also gives info on chqs and when they have to be cleared and when you will start to earn interest HTH

also try google for "general investment terms and conditions"- it comes up with them for banks etc if you go in to one it does tell you about timescales for letting you know about rates. then you can just double check for your bank .

Consumerist

Many thanks courtney22, I'll persue those line of enquiry you have suggested.

noh

It's here:-
http://www.opsi.gov.uk/si/si2009/uksi_20090209_en_6#pt5-pb2-l1g36

Paragraph 42


There is no specific reference to savings accounts. The Payment Services Regulations apply to all accounts that offer payment services which includes most savings accounts.

Consumerist

noh wrote: »

There is no specific reference to savings accounts. The Payment Services Regulations apply to all accounts that offer payment services which includes most savings accounts.

Ok thanks for the clarification noh.

I had seen this in the PSR 2009 but wasn't sure whether it would apply to savings accounts.