Government plans simple bank accounts to protect savers

Confusing introductory offers and misleading interest rates could soon be a thing of the past, as ministers yesterday unveiled plans for a range of simple, easy-to-understand financial products.

Government unveils plans for simple bank accounts

Pic: Getty

According to the Daily Mail, the Government will outline the plans today, following a review by Lloyds Banking Group's former chief risk officer Carol Sergeant.

The move is intended to provide consumers with a simple savings account or life insurance product that "does what it says on the tin".

An easy-access savings account, 30-day notice savings account, regular savings account and fixed-term life insurance are among the straightforward products set to be introduced, and there will be no introductory interest rates or new customer bonuses to worry about.

The plans aim to make it easier for consumers to get a better interest rates on their savings account, and make finding the best deals easier.

Sajid Javid, Economic Secretary to the Treasury, told the Mail: "People need to be able to manage their everyday finances with confidence and ease.

"The products outlined in this report represent a milestone towards achieving this, and I am impressed with the way that such a diverse group of organisations has worked together to develop them."

Carole Segeant echoed Mr Javid's comments, saying: "I hope the simple financial products initiative will make it easier for people to understand and compare the key financial products they need and make good choices with confidence. It is now really important to make the recommendations a reality."

What do you think? Should finance firms make all their products simpler and easier to understand? Leave your comments below...