UK watchdog proposes overhaul of cash savings products

LONDON, Jan 9 (Reuters) - Britain's markets watchdog
proposed on Thursday a single interest rate for cash savings
products, a move it says would bump up interest payments to
consumers by 260 million pounds ($340.96 million) a year.

The Financial Conduct Authority (FCA) said competition in
cash savings products is not working well for many of the 40
million consumers who hold either an easy access savings account
or easy access cash Individual Savings Account or ISA.

"Under new rules all firms will have to set a single easy
access rate (SEAR) across all easy access accounts," the FCA
said in a statement.

"Firms will have flexibility to offer multiple introductory
rates for up to 12 months, then they will need to choose one
SEAR for their easy access cash savings accounts, and one for
their easy access cash savings ISAs."

($1 = 0.7625 pounds)
(Reporting by Huw Jones, editing by Sinead Cruise)