We have seen some indications of a more competitive cash savings market emerging, with higher rates being paid to savers and data indicating people are moving their money to take advantage of them. From July 2023 to October 2023, both the volume of deposits held in bank and building society non-interest-bearing accounts and easy access accounts reduced by £11bn. Deposits held in fixed-term and notice accounts increased by £17bn.

This update follows the 14-point action plan we set out in July and delivers on our commitment to monitor relevant firm and market trends, including setting out higher and lower easy access rates on the market and analysis of the speed and degree of base rate rises being passed on to savers.

While there has been progress, we expect to see continued improvement from some firms.

Sheldon Mills, the FCA’s Executive Director of Consumers and Competition, said:

'There is a more competitive savings market now than July – including many easy access accounts paying above 5%.

'But there are still low paying accounts out there, particularly products that are no longer on sale. We want firms to keep prompting customers in lower paying accounts to move, and we encourage customers to shop around for the best savings deals.

'We will continue to closely monitor the savings market in 2024 to ensure that customers receive fair value.'