The FCA is consulting “on a range of options to improve competition within the cash savings market”. The crux of it is forcing a minimum savings rate to prevent banks from offering teaser rates which then reset a year later. That’s one of the things that the Monzo Marketplace is aimed at solving. Interesting development.
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That would be good. I automatically gloss over anything that suggests a rate change after a year without really thinking about it anyway, these days.
I am surprised that they are considering doing it at all. The Bank of England closed the Term Funding Scheme, so commercial banks are going to have to raise rates anyways.
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