Savings account interest rate changes

Businesses that provide savings accounts are entitled to set and change the interest rates on them. We don’t have the power to tell you what interest rate to apply to a savings account. But we can look at whether you applied any changes fairly.

People come to us when they’re unhappy because they:

• think it was unfair to reduce the interest rate on their savings account
• didn’t know they could have moved their money to another account with a better interest rate
• weren’t aware that their account’s initial interest-rate deal had ended, and they’re unhappy with the lower interest rate
• believe the advice they got about using their account – and how that affected the interest rate – was incorrect.

When we look at complaints about savings accounts, we use the regulatory and legal standards that applied at the time of the event the customer is complaining about.

You’ll find rules, guidance and good practice on savings accounts and interest rate changes in the Banking Conduct of Business Sourcebook (BCOBS) 4.1. This includes the rules about giving customers reasonable notice of any material change to an interest rate.

We only look at complaints that you’ve had a chance to deal with first. If a customer complains and you don’t respond within the time limits – or they disagree with your response – then they can come to us.

Each case is different, so what we require will vary. But we’ll look at the facts and evidence from both you and your customer. What we consider will usually include:

• the relevant laws, rules and regulations, guidance, standards and codes of practice that were in place when the event happened, including the Consumer Duty
• the terms and conditions that applied to the account when you changed the interest rate and whether you followed them correctly
• whether you treated your customer fairly
• whether you gave your customer:
  • any advice when opening the account, and if so, whether that advice was reasonable
  • clear and timely information about any changes to the account’s terms and conditions or its interest rate
• what your customer did once they became aware of the problem.

We may ask additional questions or for specific information.

We follow the FCA’s dispute resolution rules (DISP) and will take into account how you’ve tried to settle the problem. 

If we uphold a customer's complaint, we'll tell you what you need to do to put things right. For example, we may tell you to:

• pay the customer the difference between the interest rate you applied to the account and the rate they would have received if the problem hadn’t arisen, which might be the rate on a different account if we think they would have moved their money
• waive any tie-in period if the customer wishes to close the account.

We may also ask you to compensate them for any distress or inconvenience they’ve experienced as a result of the problem.

How we resolve complaints

Businesses and consumer advisers can contact our Business Support Hub on 020 7964 1400 for information on how we might look at a particular complaint, or for guidance on our rules and how we work.

We also work with businesses and other organisations to help prevent complaints.