FFL headache for prices website

Banks are getting cheap cash from the Government's Funding For Lending (FFL) scheme, and that means they don't need to offer generous savings deals — hitting revenues at MoneySupermarket.

The price comparison website said it saw lower competition among banks for retail deposits in the fourth quarter, meaning fewer offers came to market with decent interest rates that would make customers open an account via MoneySupermarket. But that was more than offset by more switchers clicking on its insurance and travel links. MoneySupermarket expects full-year revenues to rise 15 per cent to £204.5m.

It added that MoneySavingExpert.com, which it bought from its founder Martin Lewis last summer in an £87m deal, had contributed £1.8m of revenues between September and the end of 2012.