The Need

The Financial Conduct Authority (FCA) has recently completed research into the cash savings market, outlining that 87% of UK adults hold a savings product.

Unsurprisingly, the consultation paper found that the cash savings market is not working well for many clients.

Key Findings


Providers have significant amounts of clients’ savings in accounts opened long ago (e.g. more than five years ago). These accounts pay lower interest rates than those opened more recently.


Providers need to improve the transparency of their practices, with little information currently being given to consumers about alternative products.


Clients are put off switching accounts by the expected inconvenience and low perceived gains from opening another account. 80% of easy access accounts have not been switched in the last three years.


The large Personal Current Account (PCA) providers have considerable advantages because they can attract most easy access balances despite offering lower interest rates.

the fca proposed in 2015, four major remedies

Disclosure Remedy

Giving clients sufficiently clear and targeted information at the right time to quickly compare their savings accounts with alternative ones and know how to switch if they want to do so.

Switching Remedy

Making the switching process as easy as possible so that it does not put clients off moving their money to another savings provider or to another savings account with the same provider.

Convenience Remedy

Removing some of the advantages of the large providers by making it easier for firms to provide a way for consumers to view and manage accounts with different providers in one place.

Sunlight Remedy

Being more transparent about the way in which providers are reducing interest rates on variable rate savings accounts the longer a consumer holds the account.

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