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Synopsis
Interest rates on all savings accounts are at record lows in the UK and are failing to entice customers, despite improving economic conditions. Growth has been slow across all savings accounts, apart from ISAs, which have seen growth due to the upper limits being raised every year since 2010, not because of attractive interest rates.

Summary
Interest rates on all savings accounts are at record-lows in the UK and are failing to entice customers despite improving economic conditions. Growth has been slow across all savings accounts, apart from ISAs, which have seen growth due to the upper limits being raised every year since 2010, not because of attractive interest rates.

The central bank rate remaining so low has meant that banks have had access to extremely cheap funds and therefore have not needed to compete for savings accounts from consumers. This in turn has made borrowing from banks cheaper, meaning taking on debt for high-value purchases or moving house has been cheaper throughout the review period, so investing and paying off debt has been more appealing than stashing cash away in savings accounts
Average pay, including bonuses, increased by 3.0% in May to July 2015, compared to the same period in the previous year, which marked the largest rise in six years. This, combined with record ow inflation – hasn’t been above 0.1% since January 2015, and dropped back to -0.1% in September 2015 – means that real wages have grown substantially throughout 2015, something not seen since before the financial crash. Furthermore, UK unemployment fell to a seven-year low of 5.4% in the three months to August, with 79,000 more people in work than the previous quarter.

Despite more people being in work, and those in work seeing growth in real wages, people are saving a smaller percentage of their wage than at any time since 2008. People generally became very wary of debt in the immediate aftermath of the financial crash, which encouraged saving and saw the saving rate rise to 11.4%. A recent surge in consumer confidence though, has largely seen people lose that fear, as the rate plummeted to 4.6%, with people looking towards spending more – spending on hotels and restaurants was up 8% in 2015 up to October, for example – or paying off debt with higher interest rates than savings accounts can offer.

The extremely uncompetitive savings account market, in terms of interest rates, has clearly been a factor in the savings rate, as consumers haven’t been tempted to lock money away.

Two million customers have switched current account providers in the two years since the Payments Council Current Account Switch Service for individuals, small companies and charities was introduced to make the process easier. The scheme is also known as the 7-day switch aimed to promote competition in the market and allow consumers more choice.

This suggests that despite record-low savings rates being offered in a very uncompetitive market, banks can still attract customers on mass with a relatively good offer. Santander has been a perfect example of this in 2015, who despite charging GBP2.0 per month for its 123 account, has attracted 98,400 new customers this year due to a more competitive interest rates and cashback on household bills.

Scope
- This report provides market analysis, information and insights into the UK retail savings industry

- It provides a breakdown of the types of savings products offered in the UK

- It analyzes drivers and the outlook for the market

- It provides information on the main banks in the UK market

- It covers news and regulatory developments

- It forecasts the future of the retail savings industry in the UK over the next five years

Reasons To Buy
- Gain an understanding of the UK retail savings industry.

- See monthly and annual statistics on every aspect of the market, both in written form and shown in graphs and tables.

- Read analysis of the relevant market statistics, indicating what has been happening in the retail savings market, why it has been happening, and what to expect over the coming years.

- Read about all the economic factors impacting the industry.

- Read about how individual banks and building societies are affecting the market, in terms of market share and innovation.

Key Highlights
The outstanding balance of total deposits held by households increased from GBP1.10 trillion at the end of 2010 to GBP1.28 trillion at the end of December 2014, an increase of 16.74% and a CAGR of 3.74%. The outstanding balance rose by a further 2.7% to GBP1.31 billion at the end of July 2015, since the start of the year.

Table Of Contents

Retail Savings in the UK - Key Trends and Opportunities to 2019
Table of Contents
1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Market Analysis
3.1 Market Size
3.1.1 Monetary and Financial Institutions
3.1.2 National Savings and Investments (NSandI)
3.1.3 Sight and Time Deposits
3.1.4 ISAs
3.1.4.1 Cash ISAs
3.1.4.2 Cash ISA Breakdown
3.1.4.3 Stocks and Shares ISAs
3.1.4.4 ISAs by Region
3.1.4.5 ISAs by Income Group
3.1.4.6 Junior ISAs
3.1.4.7 ISAs by Age and Gender
3.2 Interest Rates
3.3 Funding for Lending Scheme
4 Consumers
4.1 Economic Backdrop
4.1.1 Real GDP Growth
4.1.2 Labor Market Conditions
4.1.3 Disposable Income
4.1.4 Inflation
4.1.5 Central Bank Rate
4.1.6 House Prices
4.1.7 Energy Bills
4.1.8 Household Debt
4.2 Saving Behavior
4.2.1 Saving Ratio
5 Competitive Landscape
5.1 Savings Account Interest Rates
5.2 Product Innovation
5.3 Switching Banks
6 Market Outlook
7 Regulation and Compliance
7.1 Recent Changes
7.1.1 Recent ISA changes
7.1.2 Bank of England Stress Testing
7.1.3 Funding for Lending Scheme
7.1.4 Financial Services Compensation Scheme
7.1.5 Capital Requirements Directive IV (CRD IV)
7.1.6 Financial Services (Banking Reform) Act 2013
7.2 Upcoming Regulations
7.2.1 Basel III
8 News
9 Deals
10 UK Retail Banks
10.1 Barclays Plc - Company Overview
10.1.1 Barclays Plc - Profile
10.1.2 Barclays Plc - Main Savings Products
10.1.3 Barclays Plc - Main Competitors
10.1.4 Barclays Plc - Board of Directors
10.2 HSBC Plc - Company Overview 58
10.2.1 HSBC Bank Plc - Profile
10.2.2 HSBC Bank Plc - Main Savings Products
10.2.3 HSBC Bank Plc - Main Competitors
10.2.4 HSBC Bank Plc - Board of Directors
10.3 Lloyds Banking Group Plc - Company Overview
10.3.1 Lloyds Banking Group Plc - Profile
10.3.2 Lloyds Banking Group Plc - Main Savings Products
10.3.3 Lloyds Banking Group Plc - Main Competitors
10.3.4 Lloyds Banking Group - Board of Directors
10.4 National Savings and Investments - Company Overview
10.4.1 National Savings and Investments - Profile
10.4.2 National Savings and Investments - Main Savings Products
10.4.3 National Savings and Investments - Main Competitors
10.4.4 National Savings and Investments - Board of Directors
10.5 Nationwide Building Society - Company Overview
10.5.1 Nationwide Building Society - Profile
10.5.2 Nationwide Building Society - Main Savings Products
10.5.3 Nationwide Building Society - Main Competitors
10.5.4 Nationwide Building Society - Board of Director
10.6 Santander UK Plc - Company Overview
10.6.1 Santander UK Plc - Profile
10.6.2 Santander UK Plc - Main Savings Products
10.6.3 Santander UK Plc - Main Competitors
10.6.4 Santander UK Plc - Board of Directors
10.7 The Royal Bank of Scotland Group - Company Overview
10.7.1 The Royal Bank of Scotland Group Plc - Profile
10.7.2 The Royal Bank of Scotland Group Plc - Main Savings Products
10.7.3 The Royal Bank of Scotland Group Plc - Main Competitors
10.7.4 The Royal Bank of Scotland Group Plc - Board of Directors
11 Appendix
11.1 Methodology
11.2 Contact Timetric
11.3 About Timetric
11.4 Timetric's Services
11.5 Disclaimer

List of Tables
Table 1: Banking Industry Definitions
Table 2: The UK - ISA Subscription Limits, FY1999-2000 to FY2014-2015
Table 3: The UK - Cash ISA Market Summary, FY20010-2015
Table 4: The UK Retail Saving - Competitor Interest Rates (%), Financial Year 2015/16
Table 5: Recent and Upcoming Regulatory Changes, 2012-2018
Table 6: Barclays Plc, Key Facts
Table 7: Barclays Plc, Main Savings Products
Table 8: Barclays Plc, Board of Directors
Table 9: HSBC Bank Plc, Key Facts
Table 10: HSBC Bank Plc, Main Savings Products
Table 11: HSBC Bank Plc, Board of Directors
Table 12: Lloyds Banking Group Plc, Key Facts
Table 13: Lloyds Banking Group Plc, Main Products
Table 14: Lloyds Banking Group Plc, Board of Directors
Table 15: National Savings and Investments, Key Facts
Table 16: National Savings and Investments, Main Products
Table 17: National Savings and Investments, Board of Directors
Table 18: Nationwide Building Society, Key Facts
Table 19: Nationwide Building Society, Main Products
Table 20: Nationwide Building Society, Board of Directors
Table 21: Santander UK Plc, Key Facts
Table 22: Santander UK Plc, Main Products
Table 23: Santander UK Plc, Board of Directors
Table 24: The Royal Bank of Scotland Group Plc, Key Facts
Table 25: The Royal Bank of Scotland Group Plc, Main Products
Table 26: The Royal Bank of Scotland Plc, Board of Directors

List of Figures
Figure 1: UK - Household Cash Deposits - Balances Outstanding (GBP Million), 2010-2015
Figure 2: UK - Household Cash Deposits - Balances Outstanding (GBP Million), 2010-2015
Figure 3: UK - Balances Outstanding on Household Deposits at MFIs (GBP Million), 2010-2015
Figure 4: UK - Balances Outstanding on Household Deposits at MFIs (GBP Million), 2010-2015
Figure 5: UK - % of Household Deposit Balances Held at MFIs, 2009-2015
Figure 6: UK - Balances Outstanding on Household Deposits in NSandIs (GBP Million), 2010-2015
Figure 7: UK - Balances Outstanding on Household Deposits in NSandIs (GBP Million), 2010-2015
Figure 8: UK - Time and Sight Deposit Outstanding Balances - Household Sector (GBP Million), 2010-2015
Figure 9: The UK - Balances Outstanding on Cash ISAs in the Household Sector, 2009-2015
Figure 10: The UK - Total Amount Subscribed to Cash ISAs, FY2009-2015
Figure 11: The UK - Total Number of Cash ISAs, FY2009-2015
Figure 12: The UK - Cash ISA Balances as a Share of Total Deposit Balances Outstanding (%), 2009-2015
Figure 13: The UK - Savings Accounts Sector Breakdown, 2013
Figure 14: The UK - Number of Stocks and Shares ISAs, FY2009-2010 to FY2014-2015
Figure 15: The UK - Amount Subscribed to Stocks and Shares ISAs, FY2009-2010 to FY2014-2015
Figure 16: The UK - Average amount subscribed to Stocks and Shares and cash ISAs, FY2005-2015
Figure 17: The UK - Amount Subscribed to Stocks and Shares ISAs, 2008-2015
Figure 18: The UK - Number of People Subscribed to ISAs by Region, FY2012-2013
Figure 19: The UK - Number of Individuals Subscribed to Stocks and Shares ISAs by Income Group and Subscription Limits, FY2012-2013
Figure 20: The UK - Number of Individuals Subscribed to Stocks and Shares ISAs by Income Group and Subscription Limits, FY2012-2013
Figure 21: The UK - Junior ISA Breakdown, 2012-2015
Figure 22: The UK - Junior ISA Subscription Limits, FY2011-2015
Figure 23: The UK - Number of ISA Subscribers by Age, FY2013
Figure 24: The UK - Number of Male ISA Subscribers by Age, FY2013
Figure 25: The UK - Number of Female ISA Subscribers by Age, FY2012-2013
Figure 26: The UK - Average Saving Account Interest Rates (%, End-year), 2011-2015
Figure 27: The UK - Real GDP Growth (%), 2008-2018
Figure 28: The UK - Unemployment and Redundancy Rates (%), 2006-2015
Figure 29: The UK - Average Weekly Earnings (GBP), 2004-2013
Figure 30: The UK - Household Disposable Income (GBP), 1997-2013
Figure 31: The UK - Consumer Price Inflation (%), 2010-2015
Figure 32: UK BoE Official Bank Rate (%), 2006-2015
Figure 33: The UK - Average House Prices (GBP), 2005-2014
Figure 34: UK Annual Gas and Electricity Bills: 2004-2014
Figure 35: The UK - Household Savings Ratio(%), 2008-2015
Figure 36: The UK - Market Shares of the 10 Leading Retail Saving Institutions(%), 2014
Figure 37: The UK - Market Shares of the Leading Current Account Providers (%), 2014
Figure 38: UK: Current Account Net Gains/ Losses by Banks, 2014
Figure 39: The UK - Total Amount Subscribed to ISAs Forecast: FY2007-2018
Figure 40: The UK - Household Cash Deposits - Balances Outstanding (GBP Billion), 2015-2019
Figure 41: The UK - Forecasted Savings Account Interest Rates, 2011-2019

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