The Financial Conduct Authority (FCA) of Britain has noted an emerging competitive market with higher interest rates in savings accounts. However, regulatory intervention may still be necessary to ensure fair value for customers.
Lawmakers have criticized lenders for promptly increasing interest rates for borrowers while being slower to raise rates for savers. Earlier this month, the FCA instructed nine banks and building societies, including HSBC, Lloyds, NatWest and Barclays, to report by the end of August whether their savings rates align with the "consumer duty" regulations introduced in July.
The FCA reported an increase in the availability of higher interest rates in both term-limited and easy-access accounts since publishing its plan.