The FCA has recently published a discussion paper on the impact of implementing a basic savings rate to instant access savings accounts.
Giles Hutson, CEO Insignis Cash Solutions issues his initial comments on the proposal:
“While important new dynamics have increased competition and therefore savings rates, having a ‘base rate’ for savings would create a useful benchmark. Ultimately, those who actively manage their cash across institutions and maturities will most materially improve their returns.
“This is a positive move from the FCA for the savings market. Average rates for savers have been below inflationary figures for some time now and we welcome this initiative to help mitigate the current environment. Insignis welcomes any and all measures that help savers.”