'Teaser' rates that lure savers face scrutiny A study into the effect of teaser rates will form a major part of an investigation into the cash savings market announced by the FCA today. It will try to establish "whether competition is working effectively in the best interest of consumers." The FCA said the work was important because more than 80pc of adults hold a cash savings account at some point in their life. Separate estimates by The Telegraph, based on official data, suggest 17 million of 25 million households currently use a cash savings account. Martin Wheatley, chief executive of the FCA, said: "In looking at cash savings, we will examine an area that affects most people and see if there is action we need to take. This is exactly the sort of area I want the FCA to be operating in. We know that switching rates are low for financial services products and savings accounts are no exception. Even when people do switch their accounts, they are twice as likely to go with their existing provider than move to the offering of a competitor. The FCA retains the power to ban firms from using teaser rates if they are deemed as a negative influence on the savings market.