For businesses
  1. Home /
  2. For businesses /
  3. Complaints we deal with /
  4. Banking and payments /

Savings account interest rate changes

Last updated: 26 January 2021

On this page

  1. Types of complaints we see
  2. What we look at
  3. Handling a complaint like this
  4. Putting things right

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.

Types of complaints we see

Customers may complain: 

  • you unfairly reduced the interest rate on their savings account
  • they didn’t realise they could have moved their money to another account paying a better rate of interest
  • they didn’t realise their account’s initial interest-rate deal had ended and they were receiving a lower rate of interest
  • you advised them incorrectly about using their account and how this might affect the account’s interest rate

What we look at

We’ll usually look at: 

  • any relevant rules, guidance and good practice – including the Banking Conduct of Business Sourcebook (BCOBS), which requires you to give customers reasonable notice of any material change to an interest rate (BCOBS 4.1.2(3))
  • 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 steps your customer took once they became aware of the problem

Handling a complaint like this

We only look at complaints that you’ve had a chance to look at 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.

Find out more about how to resolve a complaint. 

Putting things right

If we agree with a customer’s complaint, we’d normally expect you to put them in the financial position they would have been in if you’d done things correctly. 

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 you’d acted correctly – which might be the rate on a different account if we think they would have moved their money
  • compensate the customer for any distress or inconvenience they’ve suffered
  • waive any tie-in period if the customer wishes to close the account