* Regulator says many consumers do not shop around
* Biggest banks offering lower rates on average (Adds comment from FCA director, further details)
LONDON, July 8 (Reuters) - Britain's biggest banks aregetting away with paying lower interest rates to customers thathave stayed with the same savings account for years because manyconsumers do not shop around, the country's financial regulatorsaid on Tuesday.
The Financial Conduct Authority said that Britain's biggestpersonal current account providers still attract a largeproportion of the country's deposits despite on average offeringlower rates than smaller competitors.
Lawmakers are concerned about the dominance of Britain'sbiggest five banks - Lloyds, RBS, HSBC, Barclays and Santander UK - whichhandle more than three-quarters of personal current accounts.
The regulator is calling for views from the industryfollowing the publication of an interim report into theeffectiveness of competition in the cash savings market.
Chris Woolard, the FCA's Director of Policy, Risk andResearch, said the regulator's initial view was that competitiondid not appear to be working in the interest of many consumers.
"In this market there is a minority of very active, veryengaged consumers who regularly change provider to get the bestdeal. We want to look more closely at what is inhibiting themajority of customers from getting better deals," he said.
The FCA said it would undertake further research beforedeciding whether it should intervene. It will look at what canbe done to ensure consumers are aware of the rates they receiveand what is on offer elsewhere.
(Reporting by Matt Scuffham; editing by Jason Neely)