Treasury Committee writes to banks and FCA concerning savings rates

Article summary

The Treasury Committee has written to the chief executives of the UK’s largest banks asking if they believe all their savings rates provide ‘fair value’ to customers and whether customer inertia is being exploited. The Committee has also written to the Financial Conduct Authority (FCA) asking if banks have changed their savings rates as a result of the regulator challenging them; how ‘fair value’ for customers will be assessed; and what enforcement action can be taken if firms do not comply with the consumer duty. The FCA is also asked how it will judge whether banks are making enough effort to encourage savers to switch to higher rates.