FCA finds some savings accounts pay just 0.01pc

It was the second set of such data published by the regulatory body, as part of its so-called “sunlight remedy” which aims to shed light on the strategies of firms towards their long-standing customers.

The data showed that some accounts were paying interest rates as low as 0.01%.

“We said that one of our priorities this year will be focused on the treatment of long-standing customers,” said FCA director of strategy and competition Christopher Woolard.

“Our new rules, coming into force at the end of the year, will help consumers get the facts they need to make an informed decision about what to do with their savings.”

Woolard said that in a well-functioning market, providers should be competing to offer the best possible deal to consumers.

“Our sunlight remedy data shows that some consumers could be better off by opening a different account,” he added.

Alongside the data, the authority also published an update on its cash savings market study, including the findings of a series of trials with 130,000 consumers that explored ways to encourage them to switch to better savings accounts.

The trials tested a number of methods, including digital reminders by text and email over the benefits of switching, a switching box periodically given to customers giving them information on the potential gains of shopping around, and a return switching form with a pre-paid envelope enabling a customer to switch to a better account with their existing provider more easily.

While the switching box and the return switching form had some positive effects, the FCA said digital reminders returned a particularly positive result and were just as effective as letter reminders.