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FCA suggests 'basic savings rate' to boost returns

FCA suggests 'basic savings rate' to boost returns

Business
Banks could be forced to set a minimum interest rate on their savings accounts, the Financial Conduct Authority (FCA) has suggested.The FCA said it was concerned that savers who stay with the same bank or building society for a long time get poor returns on their money.Some banks currently pay just 0.05% a year on instant access accounts.The Basic Savings Rate (BSR) would apply to all easy access cash ISA products, as well as savings accounts.It would be applied after the account had been opened for a set period, for example one year. FCA considers texts to warn of low savings rates Why hasn't my savings rate gone up yet? "Providers can take advantage of high levels of customer inaction to pay lower interest rates to longstanding customers," said Christop...