Money Saving Expert Martin Lewis has given his verdict on the proposed changes to savings accounts from the Financial Conduct Authority (FCA).
The FCA has proposed that banks will have to set a single easy access rate (SEAR) across all easy access savings accounts.
Under the rules, savings account providers will be able to offer multiple introductory rates for up to 12 months, then they will need to choose one SEAR for their easy access cash savings accounts, and one for their easy access cash savings ISAs.
Savings guru Martin appeared on Good Morning Britain to advise viewers on what the changes could mean to their accounts.
He said: “There are lots of people sitting on antiquated savings accounts that pay spit-worthily low rates, down to 0.01 per cent.
“After you’ve had an easy access savings account for a year, everybody in future will have to be moved onto a SEAR.
“That rate could still be pants, but it will be one rate and it will be easier for people to find out their rate.
“There is some interesting consequences.
“First of all, they have said that they do expect the top rates for savers to come down a little bit, but for the bottom rates to go up.
“So that’s somewhat worrying for people who actively move their savings.
“We do have some accounts where the rate stays good for more than a year, which won’t now.”
He added: “It will be a pants rate, but it will be an exposed pants rate.
“I think it’s positive for all the people who never look after their savings and just leave them sitting somewhere, and negative for people who are always on top of their savings and look after them.”
