The Financial Conduct Authority (FCA) has launched a new campaign which encourages consumers to shop around for a better savings rate.

Research by the regulator has shown that just over half (52%) of savers said they have switched, or were considering switching, their savings accounts, taking advantage of the continued availability of better rates.

Over two thirds (69%) of those surveyed said they would consider switching.

The £600,000 campaign, which will run across radio, digital audio and social media, aims to prompt consumers to review their savings by highlighting how quickly they can find a better rate.

The FCA website will also have a dedicated page that consumers can use to calculate how much they could earn in higher paying savings accounts.

Executive director of consumers and competition at the FCA, Sheldon Mills, said: "We know that people can be put off switching for a variety of reasons, but they could be making their money work harder.

"There are some great rates out there and it could take as little as 5 minutes to find a better deal."

The FCA has already taken action to improve the savings market and has seen signs of a more competitive market emerging, with customers moving their money to take advantage of higher rates.

Between July and December 2023, the amount held in bank and building society non-interest-bearing accounts reduced by £13bn and in easy access accounts, which typically have lower in interest rates, by £9bn.

Deposits held in fixed-term and notice accounts, which often come in higher rates of interest, increased by £24bn.

However, the regulator said that more customers could move to take advantage of rates available, including a number of accounts offering rates above 5%.

Head of savings at Shawbrook, Adam Thrower, added: "In the past year, savings rates hit their highest point in over a decade. It's disheartening that many people haven't seized this opportunity and maybe losing out on hundreds of pounds in missed interest. There is a world of options out there, and not just on the high street. People often stick to the names they know, missing out on the chance to boost their earnings with smaller banks that are equally secure when FSCS accredited and offering much better rates.

"Incredibly 40% of savers have no clue about the interest rates on their savings. This lack of awareness makes it likely that they'll keep missing opportunities to explore the market and switch for a better rate, ultimately losing out on substantial interest earnings. Savers really should consider alternative options and ensure they're making the most of the current financial landscape."

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