# Savings deposits increased as UK entered recession
Published: 2023-01-17
Category: Finance
Category URL: https://luxuryadviser.com/category/finance/
Meta Title: UK Recession Lifts CACI Members' Savings Deposits to...
Meta Description: UK savings hit £1.01 trillion as recession sparks a £10bn surge in non-ISA deposits. Despite low-interest rates, specialist banks offer promising returns, says...
URL: https://luxuryadviser.com/savings-deposits-increased-as-uk-entered-recession/

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qsppmd002owirgz8cqafbh/images/recession-1736747852510-compressed.jpeg)

- **Savings deposits held by CACI member institutions increased as UK entered recession, Paragon Bank analysis finds**
- **Total deposits increase by £10 billion to £1.01 trillion, with non-ISA deposits topping £750 billion for first time**
- **Overall savings increase follows Bank of England base rate rises, with the proportion of non-ISA accounts offering less than 0.5% interest falling from 82% to 78%**

**Savings deposits held by CACI members increased to £1.01 trillion as the UK economy entered recession, new analysis by Paragon Bank has found**

The increase in total savings followed a £10 billion month-on-month increase in the overall value of non-ISA deposits, totalling over £750 billion for the first time (£750.03 billion).

Following rises to the Bank of England’s base rate, the proportion of Instant Access non-ISA accounts offering less than 0.5% interest fell from 82% to 78% – totalling £392 billion of all such deposits.

Rising from £200 billion, the total amount held in Instant Access non-ISA accounts offering more than 0.5% climbed to £240 billion.

The overall amount held in ISAs fell marginally by £16 million.

The analysis of the latest data, covering October 2022 and comprising the deposits of 34 leading providers, also found that the proportion of Instant Access non-ISA accounts holding up to £1,000 remained steady at 55% – with 36% of all accounts up to than £100.

**Commenting on the new analysis Derek Sprawling, Paragon’s Savings Director, said**: “As the country headed towards recession, savers took notice – leading to a modest rise in the value of overall deposits, but there is more that they could be doing.

“Though the overall number of open accounts offering less than 0.5% fell to 77%, it is concerning that the overwhelming number of accounts are not receiving the return that savers deserve.”

**He continued**: “With strong returns available from savings products provided by specialist banks, savers need not wait for Bank of England Base Rate rises before they see improved rewards on their hard-earned money.

“Rather than wait to see what the Bank of England decides, specialist banks are anticipating changes. Accordingly, I urge savers to take advantage of what is currently available and not delay their making the right decisions for their financial circumstances.”


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---