.jpg)
Consumers will be encouraged to shop around for a better savings rate in a new campaign launched today by the City regulator, the Financial Conduct Authority (FCA).
Just over half of savers (52%) said that they had switched, or were considering switching, their savings accounts, taking advantage of the continued availability of better rates. Around two-thirds (69%) of those surveyed said they would consider switching.
The FCA’s £600k campaign, which will run across radio, digital audio and social media, will prompt consumers to review their savings by highlighting how quickly they can find a better rate. Consumers will also be able to use a dedicated page on the FCA website to calculate how much they could earn in higher paying savings accounts.
Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:
“We know that people can be put off switching for a variety of reasons, but they could be making their money work harder.
"There are some great rates out there and it could take as little as 5 minutes to find a better deal.”
The FCA has already taken action to improve the savings market and has seen signs of a more competitive market emerging, with customers moving their money to take advantage of higher rates.
From July 2023 to December 2023, the amount held in bank and building society non-interest-bearing accounts reduced by £13bn and in easy access accounts, which typically have lower interest rates, by £9bn. Deposits held in fixed-term and notice accounts, which often come with higher rates of interest, increased by £24bn.
However, more consumers could move to take advantage of rates available – including a number of accounts offering rates above 5%.
Background:
- Campaign creative is available from the press office on request
- 14-point action plan on cash savings
- December 2023 update on the cash savings market
- As of 19 February 2024, there were 319 Instant / No Notice accounts available paying over 3%, 170 over 4% and 37 over 5%. (Source: https://moneyfactscompare.co.uk/)
- Stats on savers switching were from a survey conducted by YouGov in November 2023, with a sample size of 1519.
