Savings market still isn’t fair, says FCA

The FCA says flaws it found in the savings market in 2015 haven’t been solved by the steps it has taken since

The FCA published its minutes today, highlighting that the problems it identified in the savings market in 2015 haven’t been solved by the ‘Sunlight Remedies’ it has implemented since.

Sarah Coles, personal finance analyst, Hargreaves Lansdown:

“When people are working so hard to put money aside for the future, it’s only right that the money they are putting away is working just as hard for them. Clearly, as the FCA has found, this isn’t always the case at the moment. And while it’s good news that it is trying to improve things, the fact that it is planning more consultations and proposals means there won’t be a solution overnight.”

“This is going to be a tough nut to crack, so it’s important to take action with your own savings as soon as possible. You can put your emergency cash savings safety net into an easy access savings account paying up to 1.35 per cent. After that it’s important to work out the most sensible period of time to lock your savings away. You can, for example, get up to 2.1 per cent if you fix for two years, and 2.56 per cent if you fix for five. Because while savings rates are hardly a reason to be cheerful at the moment, it doesn’t mean you need to stick with a savings account that’s profoundly depressing.”

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