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MSE News: Watchdog mulls probe into stingy savings accounts

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Banks that pay ultra-low interest rates on savings accounts because customers don't switch may face a crackdown...
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Watchdog mulls probe into stingy savings accounts

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Watchdog mulls probe into stingy savings accounts

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It can't exactly impose a minimum interest rate.
I don't know whether they know how many of these switches are attributable to bonus tarts, but I suspect that number is very high, and the figures are therefore most probably distorted and quite meaningless. My own switch rate has increased 200% since I switched none in 2013 and 2 in 2014. Alas, there were only 2 joining bonuses I qualified for, else my switcher rate increase would have been even higher. It has now gone back to zero and will stay there until there's another joining bonus I qualify for.
The FCA could make all sorts of decisions regarding savings - such as:
Or anything else that will cost the banks a lot of money to implement. So there is a huge danger that the bottom line result will be middle-of-the-road savings rates for everyone, and that all savvy savers will lose out, as banks will hardly reduce their dividends to pay for the extra admin that any FCA ruling would no doubt entail. The smaller Building Societies will absolutely love (not) any additional compulsory admin.
The FCA also seem to be completely ignoring the fact that banks don't actually need savers' money as long as we still have FFL and QE. Put the screws on the banks and BSs, and they'll just not offer any savings accounts at all, or lower the max amounts they will allow in the accounts they do offer.
NB. Should this thread by over on the Savings and Investments board?
LOL, yes, mathematically you are absolutely right, and I was debating infinite vs 200% as I wrote my post. But then I thought 200% is more meaningful to many readers.......
Funding For Lending & Quantitative Easing
I do, however, agree in principle with the rest of your points.
Guilty as charged, and I do apologise if I insulted anyone by using populist expressions. I will stick to proper numbers from now on.
FFL = Funding For Lending, Treasury giving cheap money to financial institutions so they can provide businesses with affordable loans.
http://www.bankofengland.co.uk/markets/Pages/FLS/default.aspx
QE = Quantiative Easing, figuratively speaking that is printing (temporary?) money when you have run out of money. Helps to keep interest rates low
http://www.bbc.co.uk/news/business-15198789
I saw the news story and wondered why there was no discussion of it - now realised why!
Bizarre that it's in bank accounts section not savings board. Maybe because current accounts pay more interest than savings accounts or ISAs?