Do banks have to pay interest on Savings

artyboy

I guess it comes down to certain regulatory principles - most likely the one about needing to "treat customers fairly". There was a thread recently about someone that had found out about an elderly relative with a 6 figure balance sitting in a non-interest bearing bank account. 

Some might argue that isn't 'fair' because the bank ought to realise that the customer is disadvantaged and take steps to pay them interest somehow.

The bank on the other hand might argue that it is 'fair' in that the customer is being treated exactly the same as anyone else with money in that particular type of account. Plus they would possibly have covered their backsides further by writing to said customer letting them know of other accounts that might be more suitable for their money.

I'm actually more on the side of the banks here in that there needs to be some personal responsibility taken (with allowances for vulnerable customers) in terms of managing our own money. But because regulatory principles can be vague, there will still be those that think the banks owe greater duty of care to look after the poor little customer.

And of course this is only something that's cropped up in the last year or so, for the past 15 years of rock bottom rates, it really didn't make much difference...