FCA wants customers to shop around for the best bank interest rates and have revealed who gives the best returns on cash
With interest rates at rock bottom levels we've all become accustomed to the fact we shouldn't expect much of a return from our bank accounts.
And today, the UK's financial watchdog named and shamed the banks paying the lowest interest rates on cash savings accounts.
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If you walked into a branch to open an instant-access savings account you might want to steer clear of Danske Bank, who pay a miserly 0.01 per cent on savings. Joining them at the top of the list – or bottom depending on how you look at it – is the Northern Ireland subsidiary of state-owned Royal Bank of Scotland (RBS), Ulster Bank.
The pair of them pay out just 1p each year for every £100 saved.
Top five lowest interest rates
| Bank | Interest rate (per cent) |
| Danske Bank | 0.01 |
| Ulster Bank | 0.01 |
| First Trust Bank | 0.05 |
| HSBC | 0.05 |
| TSB | 0.05 |
So where is the best place to go according to the Financial Conduct Authority (FCA)? The answer is to find one of ICICI Bank's eight branches across the UK. The Indian-headquartered lender has five branches in London, and one in each of Birmingham, Leeds and Manchester.
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Top five highest minimum interest rates
| Bank | Interest rate (per cent) |
| ICICI Bank UK Plc | 1.15 |
| Coventry Building Society | 1.00 |
| Newcastle Building Society | 0.80 |
| Tesco Personal Finance | 0.60 |
| Virgin Money | 0.50 |
The FCA data is released as new rules come into force for UK banks to provide easier to understand information on interest rates, so customers can make better educated decisions when opening accounts.
“In a well-functioning market, providers should be competing to offer the best possible deal to consumers," said Christopher Woolard, executive director of strategy and competition at the FCA.
Our sunlight remedy data shows that some consumers could be better off by opening a different account. One of our regulatory priorities is the treatment of long-standing customers and we want to see all customers benefit from competition and innovation in financial markets.
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Top five lowest interest rate Isas
| Bank | Interest rate (per cent) |
| TSB | 0.05 |
| Danske Bank | 0.10 |
| Santander | 0.10 |
| Natwest | 0.25 |
| Yorkshire Building Society | 0.25 |
State-backed lender RBS also features on the lowest five interest rates for anyone wanting to open an in-branch cash Isa. Beaten to the top – or bottom – by TSB, RBS-owned Natwest coincidentally pay the same rate as the Bank of England.