Improving the Cash Savings Market
Citizens Advice provides free, independent and impartial advice to anyone who needs it. In 2017, we advised on more than 1,600 issues relating to savings and investments.
We are pleased to respond to the FCA’s Discussion Paper (DP) ‘Price discrimination in the cash savings market’.
We agree that discrimination against loyal and disengaged consumers is highly prevalent in the easy access cash savings market
We support the FCA’s preferred intervention of introducing a basic savings rate (BSR)
We welcome the FCA’s acknowledgment that demand-side remedies have not been sufficient to address the harm caused by the loyalty penalty
We would support the introduction of a maximum of 2 BSRs per provider, as well as a sunlight remedy that published these BSRs to enable meaningful and straightforward comparison for consumers
We think a further supply-side option that merits examination by the FCA is opt-out supplier-led internal switching
The FCA should ensure that vulnerable consumers are offered stronger protection. When a customer is identified as vulnerable, they should automatically be placed on the best equivalent deal that the provider is making available to new customers