1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Retail Banking Market Trends

Retail Savings in the UK - Key Trends and Opportunities to 2019

  • October 2015
  • 71 pages
  • Timetric
Report ID: 3384639

Summary

Table of Contents

Search Inside

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.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Amrita helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers
UK Savings: 2016 Review, Forecasts and Future Opportunities

UK Savings: 2016 Review, Forecasts and Future Opportunities

  • $ 5250
  • Industry report
  • January 2017
  • by GlobalData

Summary Retail deposits for 2016 are expected to be 6% higher than in 2015. However, market conditions over the next few years are predicted to dampen prospects for future growth. UK retail deposits will ...

2017: Key Trends in Retail Banking

2017: Key Trends in Retail Banking

  • $ 5250
  • Industry report
  • January 2017
  • by GlobalData

2017: Key Trends in Retail Banking Summary Threat posed by the commoditization of banking in terms of pressures on margins and reduced customer loyalty is constantly growing. However, data analytics will ...

IDC MaturityScape Benchmark: Omni-Experience Digital Transformation in Retail Banking in Western Europe, 2017

IDC MaturityScape Benchmark: Omni-Experience Digital Transformation in Retail Banking in Western Europe, 2017

  • $ 3960
  • Industry report
  • May 2017
  • by IDC

This IDC MaturityScape Benchmark serves as a quantified assessment for banking professionals in charge of the design and execution of retail banking business strategies."Powerful interactions across the ...

Retail Lending In Japan

March 2017 $ 350

ref:plp2015

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.