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£418 billion continues to languish in poor performing savings accounts

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Analysis of the latest CACI data by Paragon Bank shows that £418 billion of savers’ money continues to languish in savings accounts paying less than 0.1%.

CACI’s database, which captures savings data from more than 30 leading providers, showed that four out of five (80%) of non-ISA instant access accounts pay less than 0.1% in February, despite the Bank of England Base Rate increase during that month.

The CACI data also showed that nearly a third (31%) of savings accounts have a balance of less than £100, suggesting people have little to fall back on during a period of high inflationary pressure.

February’s data confirmed that despite these cost pressures, the nation’s overall savings balance increased during the month to £988 billion, up from £986 billion the previous month.

Non-ISA instant access balances led the jump, increasing month-on-month by £3 billion to £615.4 billion. This type of product accounts for nearly two thirds (62%) of all savings balances. The average savings balance is £12,511.

Instant access ISAs remain the second most common account at 18.6% of all balances, or £183.4 billion.

Derek Sprawling, Paragon Bank Savings Director, said:

“It is remarkable that £400 billion of savers’ money is sitting in accounts paying up to 0.1% and it demonstrates how the high street banks rely on consumer apathy. In this inflationary environment, I would urge savers to make their money work as hard as possible for them and to seek better rates of return for their finances. Unfortunately, for too many people convenience trumps rate, but that needs to change.”

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank
Tel: 07740090746

www.paragonbank.co.uk 

Notes to editors:

CACI produce an analysis of deposit stock from the main deposit banks providing data from more than 30 providers, based on individual adult cash savings. It allows us to focus on savings accounts, by combining all account types and both ISAs and non-ISAs. Unless stated otherwise, all data in this release is sourced from: CACI’s Current Account & Savings Database, as of end of February 2022.

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.