Belfast Telegraph

Move to ease savings switch

By John-Paul Ford Rojas

Plans to make it easier to compare and switch cash savings accounts were announced by the City regulator after it found £160bn of funds were earning the same or less than the 0.5% Bank of England interest rate.

Older accounts, representing a significant chunk of the £700bn market, tended to have lower rates than those more recently opened, a study by the Financial Conduct Authority (FCA) found.

Following the study, the FCA wants to make it easier for consumers to compare accounts.

Plans, which will be consulted on over the next month, also include reducing the current 15-day switching time for cash ISAs.

The watchdog said many consumers found it difficult to know what rate they were on or were put off switching by the expected inconvenience.

It found 80% of easy-access accounts had not been switched in the last three years.

Belfast Telegraph