£1.3 trillion of UK savings is sitting in low-interest savings accounts earning less than 50% of the Bank of England base rate (currently 4.5%), according to analysis of Bank of England credit data by Flagstone, the UK’s largest savings platform*. This equates to approximately three in every four pounds of UK savers’ hard-earned cash**.
The finding comes after research by One Poll*** found that almost half (48%) of those with a savings account couldn’t tell you what the interest rate is on it. And 29 per cent have used the same low interest savings account for more than 11 years.
Claire Jones, Head of Strategic Partnerships at Flagstone said: “People are busier than ever, so it’s understandable that their savings aren’t always front of mind. But a little work goes a long way; millions of savers could be earning double what they are today. The first step is staying informed – knowing your interest rate and knowing where to look for better options.”
The study also found 15 per cent of adults spent just ‘minutes’ assessing their options before setting up their last savings account. And 12 per cent who have cash in savings rarely or never check the progress of what’s in there.
Jones adds: “Most people aren’t money experts. So the second step to helping millions more savers earn double what they make today lies with the experts: their advisers. Advisers have an opportunity and a duty to mobilise their clients and help them think harder about cash as an asset class in its own right – one that offers competitive risk-adjusted returns alongside their investments and pensions. As an industry dedicated to preserving and growing people’s wealth across the most diverse range of opportunities, it’s time to help more people optimise their cash opportunities.”
