Savers Missing Out on Better Returns

Savers Missing Out on Better Returns.

The UK financial regulator the FCA has said that savers across the nation are missing out on bigger returns on their savings by not switching accounts for a better rate.

The Financial Conduct Authority (FCA) said that banks were paying lower rates to those who stayed with the bank longer. The regulator is now seeking ideas on encouraging savers to switch and how to make it easier to compare interest rates.

The findings from the FCA show that the bigger banks were able to attract savers despite usually offering lower rates. They said that on average savers were offered 0.5% per year with bigger providers, but smaller providers offered a more competitive rate of 1.2%.

The regulator will be investigating more into cash savings before posting its final report later this year. So far the regulator has said it would not take action on “teaser rates” which offered a better rate for a short term.