FCA Holds Meeting with Lenders to Discuss Better Returns for Savers

The FCA's executive director for competition stated that it is not within their remit to force banks to offer better rates.

Banks have been criticized for not passing on rate hikes to savers as quickly as they reflect them in their borrowing costs.

The FCA has urged savers to shop around for the best deals.

The average one-year fixed savings rate is currently 4.83%.

Financial markets forecast that the Bank Rate, the UK's base-level interest rate, will rise beyond 6% in the coming years.

The yield on UK 10-year gilts has risen to levels not seen since the 2008 financial crisis, which is bad news for taxpayers as many gilts are tied to inflation and repayments become more expensive.

The Bank of England reported a record net sum withdrawn from savings accounts in May as households are struggling.

The Governor of the Bank of England, Andrew Bailey, has pointed to "unsustainable" wage increases becoming engrained in the economy as a reason for heightened interest rate expectations.