Independent Financial Life Planners Bishop's Stortford: Very low interest rate shame

Thursday, 17 December 2015

Very low interest rate shame

As with all things Enable’s IFAs in Bishops Stortford would always recommend shopping around. Recently a report drew attention to banks paying ultra-low interest rates to loyal savers and regulators suggest strongly that customers shop around for the best deals in a move to get banks to do more to help their long-term depositors get a better return on their hard earned cash. The results of the so-called "Sunlight" study show that on some easy access accounts, rates can be as low as zero and 0.01pc.

The Financial Conduct Authority, headed by interim boss Tracey McDermott, wants people with savings accounts to shop around for the best deals. From next year, banks and building societies will have to offer clear information on interest rates that is displayed prominently alongside a customer's account balance The Financial Conduct Authority (FCA) is also forcing banks to make it easier for customers to switch to a new savings account, under rules which will come into force in December 2016.

“We are publishing this information to raise awareness of firms’ strategies towards their longstanding customers. This should also encourage firms to offer better value products to existing customers, especially those with products no longer on sale,” the FCA said. “We have called this publication the ‘sunlight’ remedy because we are shining a light on interest rates that are not prominently displayed, but that may be earned by some customers. These customers stand to lose out by not switching to a different account.” If you would like Enable’s IFAs in Bishops Stortford to try and shed more light on your savings options we are always happy to talk.

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Source : The Telegraph

No comments:

Post a Comment

IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.