2016: A year to saver?
01 December 2015
Looking back on 2015 we can conclude that it has been a mixed year of highs and lows for savers across the UK. The upsides came in the form of savers saving record amounts this year taking advantage of the variety of accounts on offer.
However, there have also been lows. The long-running debate about the Bank of England’s historically low interest rate continues to rumble on; the second half of
2015 saw experts up and down the country predicting a rates rise for first time in six years. However, an untimely downturn in the Chinese economy saw optimism dampened and now it is unlikely that we will see a rate rise anytime soon.
Despite this, we have seen a growing impetus for people wanting to save. In September, we reached a big milestone passing over £1.5bn in deposits and welcoming over 25,000 new customers since launching in March.
Also in September we commissioned our first research project to really get under the skin of UK savers and the findings highlighted some worrying trends. Nearly a third of UK adults with savings don’t know the current interest rate on their main savings account - in fact almost a fifth admit to never having checked the rate on their primary savings account.
Even when it comes to those that know their interest rate, many are receiving poor returns. More than an eighth of UK adults are earning 0.50% interest or less on their primary savings account, and with the average UK savings pot totalling £8,500, this equates to annual interest of just £43 a year before tax!
With interest rates so low, it’s no surprise UK savers are literally losing interest in their savings. People are simply not aware of how much harder their money could be working for them and so are keeping their savings in accounts that are only slightly better than a shoe box under their bed!
The key to making the most out of your money is to simply be savvier with your savings, not just aiming to save more every month or week but aiming to save smarter. 2016 should be a year to mix things up, and not let your money sit in a glorified shoe box, accruing little returns.