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What new ‘truthful worth’ financial savings charge guidelines imply for you: SYLVIA MORRIS

The clock is ticking for savings providers. They now have just a few weeks left to get their act together and start offering loyal customers a good deal.

That is because from July, the new so-called Consumer Duty rules, which require all financial services firms to offer their customers ‘fair value’, will apply to old savings accounts as well.

The regulations were put in place by the watchdog the Financial Conduct Authority (FCA) last July, but savings providers were given a year to apply them to old accounts as well. But, sadly, I warn you this is no time to breathe a sigh of relief.

But, sadly, I warn you this is no time to breathe a sigh of relief.

In fact, checking your rate regularly to make sure you are not losing out will be as important as ever in the run up to — and after — the rule change.

Rule change: From July, the new so-called Consumer Duty rules, which require all financial services firms to offer their customers 'fair value', will apply to old savings accounts as well

Rule change: From July, the new so-called Consumer Duty rules, which require all financial services firms to offer their customers ‘fair value’, will apply to old savings accounts as well

To me, it should mean providers must pay the same rate to loyal savers as they do to new ones. 

Wouldn’t that make life so much easier? But the FCA says it is not a price monitor and is not asking providers to do so.

In the run up to the deadline, providers are working to change their products or come up with a methodology to show they are offering fair value. 

In the meantime, many providers still offer stingy rates to old customers while giving new ones great deals.

Some offer the same rates to old and new. But that doesn’t mean customers are getting the best deals. And surprisingly, in some cases, old customers get better rates than new ones.

Check the best cash Isa rates in our savings tables 

In the run up to the deadline, providers are working to change their products or come up with a methodology to show they are offering fair value.

In the meantime, many providers still offer stingy rates to old customers while giving new ones great deals.

Some offer the same rates to old and new. But that doesn’t mean customers are getting the best deals. 

And surprisingly, in some cases, old customers get better rates than new ones.

See what I mean about having to keep a beady eye on your rates to get a good deal: there is no rule of thumb to determine which type of account will offer you the best value.

Among the worst is Virgin Money, which still gets away with paying as little as 0.25 per cent to 1.75 per cent on some of its old easy-access accounts.

If you are unlucky enough to be in one, switch to a better deal. 

Even if the bank increases the rates before the new rules on closed accounts come in, they are unlikely to pay top rates. New savers with the bank in a similar account can earn as much as 4.75 per cent.

You might be lucky and find you earn more than the rate offered to new savers.

There are 2,000 or more easy-access accounts now closed to new savers. If you’ve got one of them, check your rate now.

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Renewing Isa could unlock a better deal 

Good news for savers with a one-year fixed-rate cash Isa coming to the end of its term. You can renew your Isa at the higher rate.

The average rate is up from 3.8 per cent to 4.42 per cent over the past 12 months. But top rates are also on the rise.

Cash Isas have become popular since interest rates started to increase and this has spurred competition among providers.

Last year, the best you could do was 4.43 per cent from Shawbrook. This year its top rate is 4.74 per cent, with Charter Savings Bank, United Trust Bank and Oaknorth, at 4.73 per cent. 

Close behind them are Aldermore and Paragon at 4.71 per cent.

To fix for longer, the top two-year fixed-rate is slightly lower at 4.61 per cent from Oaknorth, 4.6 per cent from Beehive (the online arm of Nottingham Building Society) and Secure Trust.