FCA summons bank chiefs over low savings rate concerns

The Financial Conduct Authority (FCA) has called on the chief executives of major banks to address concerns over the low savings rates being offered to customers, it emerged on Tuesday.

According to the Financial Times on Monday evening, the city regulator had summoned top bankers from NatWest, Barclays, HSBC, and Lloyds to a meeting on Thursday to discuss the pricing of cash savings, and how banks communicate with their customers about rates.

A person familiar with the FCA's position was quoted as saying the watchdog believed there was more value that could be provided to consumers.

The FCA was also reportedly unhappy with some of the lower savings rates on offer.

In addition to the FCA's summons, Reuters said Parliament’s Treasury committee had written to the country's four largest banks - Barclays, HSBC, Lloyds and NatWest – over whether their savings rates were offering “fair value”.

In early June, the committee criticised easy-access savings rates ranging from 0.7% to 1.35% at a time when the Bank of England’s base rate had been hiked to 4.5%.

Since then, on 22 June, the BoE base rate was further increased to 5.0% - its highest level since 2008.

Reuters said no representatives from HSBC, NatWest, Barclays and Lloyds had responded to its requests for comment on the matter.

Reporting by Josh White for Sharecast.com.