Single Savers Rate – could you be due for a welcome boost?

February 12, 2020

Enable’s IFAS of Bishop’s Stortford know that is has been hard for regular savers as their rates have been so low for so long. But there is a plan afoot for banks ‘to pay single savings rate’ to help savers. Savers who’ve had cash in low-interest access accounts for years could get a welcome boost, but those who regularly seek out top rates would probably be no better off.

The idea is that Banks could soon be forced to scrap their very worst savings accounts under new proposals from the financial regulator. Many who have not been bothered to switch accounts for a while have been earning as little as 0.01% on money held in access accounts.

The Financial Conduct Authority (FCA) is considering making all banks and building societies pay a minimum savings rate across all such accounts. “Competition is not working well for many of the 40 million consumers with easy access savings accounts and we want that to change,” said the FCA in a statement. It estimates the change would see savers paid up to £381 million more interest every year.

This would amount to help for the many, those who have left savings in access accounts for years. Many of these older accounts are among the worst in the market as banks simply keep chipping away at the rate over time. The regulator would be forcing banks to have a single rate but it is not clear how high or low this might be. Given the huge sums of money we have sat in derisory access savings accounts, even a modest minimum rate would leave millions of Brits in a slightly better position.

The need for this kind of single saver rate only highlights how important it is to regularly review your savings and investment. Enable’s IFAs in Bishop’s Stortford can help you make sure you are making the most of any savings.

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