January 2020 – The Financial Conduct Authority (FCA) is to carry out a consultation on the practices of building societies and banks that drastically cut the value of savings account rates after an initial high opening rate. Loyal and trusting members often do not check the small print where accounts may be stated to considerably reduce after a period of time. The FCA proposes a Single Easy Access Rate (SEAR) for all easy access accounts. However societies can overcome this by cutting their top rates or increase mortgage rates to compensate. The consultation closes April 9th.
This follows on from the order, in August last year, by the Competition & Markets Authority (CMA) to the Nationwide Building Society to refund £6million to members for breaking the rules on unarranged overdrafts.