By cutting saving account rates more than new loan rates. The original idea was to for the FLS to be a vehicle to reduce bank costs by providing cheap state backed loans, but these have largely failed so far to be passed on to the man in the street.
But by providing an alternative source of funding to customer deposits, savings rates have been slashed since the FLS’s introduction in August. Sylvia Waycot, a financial expert at Moneyfacts, said: “Savers are being persecuted without borrowers getting the rewards. One would hope there will be better deals for borrowers coming through in the next few weeks.”
According to Moneyfacts, the number of savings accounts with an introductory bonus has more than halved to just 11 since the FLS was launched and the size of bonuses paid has also been cut from 2pc to 1.25pc.
More… Telegraph
