LONDON, Jan 9 (Reuters) - Britain’s markets watchdog proposed on Thursday a single interest rate for cash savings products, a move it says would bump up interest payments to consumers by 260 million pounds ($340.96 million) a year.
The Financial Conduct Authority (FCA) said competition in cash savings products is not working well for many of the 40 million consumers who hold either an easy access savings account or easy access cash Individual Savings Account or ISA.
“Under new rules all firms will have to set a single easy access rate (SEAR) across all easy access accounts,” the FCA said in a statement.
“Firms will have flexibility to offer multiple introductory rates for up to 12 months, then they will need to choose one SEAR for their easy access cash savings accounts, and one for their easy access cash savings ISAs.”
$1 = 0.7625 pounds Reporting by Huw Jones, editing by Sinead Cruise