Which? says structured deposits are not suitable for the mass market and claims banks are selling the products when simple savings accounts would be more appropriate.
At the Building Societies Association annual conference in Birmingham last week, Which? Money editor James Daley said the consumer champion is concerned about how banks sell structured deposits.
Speaking to Money Marketing, Daley says: “Front-line bank staff are still incentivised to sell products that are unsuitable for clients. We know that as a fact and they are advertising returns that are hardly ever achievable.”
Daley says structured deposits should only be sold to customers that have received advice.
He says: “We want to see structured deposits brought into the advised regime.” Informed Choice managing director Martin Bamford says: “I agree entirely. I think they are very complex products that are often unsuitable for inexperienced investors.
“Where we are seeing the banks selling them en mass as an alternative to savings accounts, it is, in most cases, wholly unsuitable.”