You are here: Home - Saving & Banking - News -

Average saver earns just £43 interest a year

0
Written by:
02/12/2015
Record low interest rates and poor High Street offers mean the average UK saver is earning just £43 a year of interest.

A report from Charter Savings Bank revealed more than an fifth (21%) of UK adults with savings earn 0.5% interest or less on their main savings account.

With the average UK savings pot totaling £8,500, this equates to average annual interest of just £43 before tax.

These savers are earning only slightly more in interest than the 174,000 UK adults who keep the majority of their savings in an unsecured place, such as under mattresses or in shoe boxes.

To give an idea of the scale, the Bank of England recently estimated that UK homes have £3bn of cash stashed away.

The research also revealed that while saving is a habit for the UK, many are simply not engaging with their hard-earned money: nearly a third (32%) of UK adults with savings admitted they do not know the current rate of interest on their main savings account, while almost a fifth (17%) admit to having never checked the rate on their primary savings account.

Paul Whitlock, director of savings at Charter Savings Bank, said: “High street banks are offering little more to the UK than a secure mattress for their savings, and with news that more than 400,000 NS&I savers will see interest rates on their Isas cut, it’s no surprise UK savers have themselves lost interest in their savings. People are simply not aware of how much harder their money could be working for them and so have become apathetic to taking their money from under their mattress, or from out of their High Street bank.”

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

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...

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...

Money Tips of the Week

Read previous post:
FTSE 100 reshuffle: who’s in and who’s out?

Morrisons, G4S and Meggitt have all been demoted from the FTSE 100 as part of the London Stock Exchange’s latest...

Close