In January 2020, we published a consultation paper (CP20/1) setting out proposals to simplify and improve competition in the cash savings market by introducing a Single Easy Access Rate (SEAR).
Our consultation was due to close in April 2020. Due to the impact of coronavirus (Covid-19) we extended the consultation period to 15 December 2020, in order to prioritise urgent work with banks and building societies to help consumers during the pandemic.
Given the continuing impact of coronavirus and the low-interest rate environment, we have decided to stop this work. As interest rates for new products fall, so does the gap between rates paid to new and longstanding customers, and the size of the harm falls. We therefore do not consider that introducing the SEAR would be proportionate to the current level of harm in this market. However, we will continue to monitor the market and we may revisit our priorities if we see significant harm to consumers in the future.
More information is available in our statement.
17/03/2020: Information changed Consultation closing date extended
09/01/2020: Information added Page updated from DP18/6 to CP20/1
14/05/2019: Editorial amendment Updated text and next steps