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£82bn leaves low-rate accounts as rates nudge-up 

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Over £82 billion moved from non-ISA instant access accounts offering interest rates of less than 0.1%, finds research by Paragon Bank of the latest CACI data.

From March to April 2022 the overall amount held in non-ISA instant access accounts that offered up to and including 0.1% interest fell from £411.4 billion to £329 billion.

In April CACI’s Current Account and Savings Database, which captures savings data from more than 30 leading providers, suggests a rise in the lowest rates offered by banks, following the Bank of England’s Bank Rate raise in March.

The overall value held in all non-ISA instant access accounts though only rose from £619.49bn to £619.56 billion.

While non-ISA instant access accounts recorded limited overall growth, total UK savings rose from £993bn in March to over £995 billion – with fixed-term ISAs playing a key role in the increase, rising from £74.5 billion to £76.1 billion.

Instant access ISAs remain the second most common account at 18.51% of all balances, or £184.1 billion.

Derek Sprawling, Paragon Bank Savings Director, said:

“The lifting of £82bn from accounts offering only up to 0.1% to better rates is a positive - but there are other options for savers to take, and better rates available for their savings - especially holders of the remaining £329bn which still receives less than 0.10%.

“Many savers are still getting far less than they could be, with the rates offered by high street banks rising more slowly than that of other providers. Active savers are finding better rates, and I urge those with savings in low-interest high street accounts to take steps and find better solutions for their cash. With inflation set to increase still further, taking proactive steps to protect savings is a better approach than waiting for Base Rate rises to filter down.”

For further information contact:

Tom Frew
Media Relations Manager
Paragon Bank
[email protected]

Notes to editors:

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 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