In today’s letter sent to banks, MPs said that they remain concerned that banks’ savings rates remain too low, particularly in instant access accounts.
It also noted that major banks have reported strong growth of profits and net interest margins in the first three months of the year.
MPs asked the banks to outline how the consumer duty will change the way they set their rates on savings accounts and if they are confident that the duties of the regulation are currently being met in relation to savings accounts.
They also wanted to know what steps banks are currently taking to notify their customers of the benefits of switching to higher rate products, particularly where customers have savings in instant access savings accounts.
Elsewhere, MPs also wrote to the Financial Conduct Authority today to ask it to outline how it will judge what is fair value.
MPs also wanted the FCA to point to examples of where a bank has changed its rates as a consequence of the regulator challenging them.
Chairperson of the Treasury Committee, Harriett Baldwin said that currently banks are failing on their social duty.
“With interest rates on the rise and our constituents feeling squeezed by rising prices, it is only right that the UK’s biggest banks step up their measly easy access savings rates. The time for action is now,” Baldwin said.
She also noted that the biggest banks have a “particularly important role to play in encouraging saving”.
Banks were asked to respond by July 17 while the FCA was asked to reply by July 14.
A Barclays spokesperson said: “We continue to remain committed to providing our customers with a range of options to help them save for their goals and regularly review our savings product rates."
FTAdviser approached HSBC, Lloyds Banking Group and NatWest Group for comment.
jane.matthews@ft.com
