You are here: Home - Investing -

What next for UK savers?

Written by:
New figures show the change in savings behaviour as the UK adapts to economic change.

Recent years have thrown up fresh challenges to savers in the UK as wider economic forces have put greater pressures on household finances and the Bank of England base rate has remained at a historic low (0.5%) since March 2009. As a result, savings behaviours have begun to change: a fact that new figures from Halifax only serve to underline.

The latest Halifax statistics show the number of its customers opting for a fixed rather than variable rate savings account has increased fourfold since 2011, with many now looking to longer terms for greater returns.

Richard Fearon, head of savings at Halifax, said: “We have seen a stark shift in savings behaviour in 2012 with customers primarily opting for fixed rate products over variable rates. The fact that the Bank of England base rate has remained at a historic low since 2009 may well be playing into this decision, with many also looking for greater security in an otherwise uncertain economic environment. A high proportion of customers are therefore also committing to longer term deals where they can secure a better return and a greater certainty about the future of their finances”.

Overall, 52% of savers have selected a fixed rate savings account in 2012, almost four times more than over the same period in 2011 when just over 13% of savers opted for a fixed deal. Many are now looking to the longer term deals in order to benefit from higher rates, with nearly half (46%) of fixed rate customers selecting deals of three to five years so far in 2012.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Could you reclaim PPI premiums?

Payment protection insurance policies get widely mis-sold, but there are ways to claim your money back.