- Savings deposits held by CACI member institutions tops £1 trillion for the first time, Paragon Bank analysis finds
- Latest figures record a £6billion month-on-month rise in deposits
- Deposits held in low-interest non-ISA instant access accounts continue to dominate overall total, with £428 billion held in accounts offering less than 0.5% – 82% of all such open accounts
- 36% of all non-ISA instant access accounts held less than £100, with 55% holding less than £1,000 – and 21% of all non-ISA instant access savings accounts held over £10,000
Savings deposits held by CACI members topped have for the first time topped £1 trillion following a £6 billion month-on-month rise, new analysis by Paragon Bank has found.
The analysis of the latest CACI data found that the £1.003 trillion of deposits comprised £262.6 billion held in ISAs and £740.6 billion held in non-ISA accounts.
The newly released data, covering September 2022, sees overall savings deposits recording a £17 billion increase from January – and a £25 billion increase from September 2021.
Non-ISA instant access accounts offering 0.5% interest or less (82% of all open accounts) totalled over £428 billion, including £142 billion held in accounts offering 0.25% or less (29% of all open accounts).
Over one-third (36%) of non-ISA instant access savings accounts held less than £100, with over half (55%) holding less than £1000 – with 21% holding over £10,000.
The data, which compiles the savings deposits of 34 leading providers of adult cash savings as at September 2022, and was recorded before the Bank of England increased the base rate to 3% and confirmation by the Chancellor of the Exchequer, Jeremy Hunt, that the UK economy was in recession
Commenting on the analysis Derek Spawling, Paragon’s Savings Director, said: “Savers are facing an uncertain time. Tax rises, high-inflation, and predictions of a sustained economic recession have seen them cutting back their spending to concentrate on saving
“While the new analysis shows that people are making these hard decisions to help build up their savings pots, it also uncovered how substantial sums continue to be held in accounts offering low returns.”
He continued: “I urge savers to take the same approach to finding the best financial products and rates for their savings as they are taking on reducing their spending. By investing time in finding the best deals they can help to maximise the value of their savings and returns they could be receiving.”