UK’s Financial Conduct Authority (FCA) has launched new measures to facilitate holders of cash savings account and boost competition.
Under the new rules, scheduled to be effective from 1 December 2016, firms will have to offer clear information to consumers on interest rates for cash savings products.
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The interest rate should be displayed alongside account balance information in all rate related customer communications. Key information related to interest rates should be displayed in a product summary box at the point of sale.
The new rule also requires firms to clearly notify consumers on interest rate changes or end of an introductory rate.
In addition, firms are required to offer an efficient service in order to help customers switch to a better account offered by the same provider.
Besides, the regulator has also revealed data on the 32 providers of easy access cash savings accounts and easy access cash ISAs offering the lowest interest rates.
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By GlobalDataFCA director of strategy and competition Christopher Woolard said: "With many savers never switching because they don’t think it will make a difference, our rules will help consumers get the information they need to shop around. In a good market, providers should be competing to offer the best possible deal and should a consumer wish to move accounts, they should be able to do so with the minimum of fuss.
"Our rules are about giving consumers the facts they need to make an informed decision about what to do with their savings, and the ability to act on it quickly."
