We use cookies to track usage and preferences.

News releases

Average easy access account balance up 10% to nearly 11k as market growth continues

The average easy access non-ISA balance has increased 10% year-on-year, from £9,995 to £10,989, as the easy access market continues its upward trajectory.

These latest figures, based on CACI data analysed by Paragon Bank, show the easy access market value increased by £53.5 billion last year, accounting for 97% of the savings market growth within that period.

While the easy access market grew from £496.5 billion in January 2020 to £550 billion in November, the total savings market increased by around £55 billion in that time.

Easy access, non-ISA products now account for 58% of the total savings market – by far the largest market share of any product type. Instant access ISAs account for 19% of the market, while fixed rate non-ISA products account for 9% of total savings.

Despite this increase in average balance over the course of last year, 38% of all easy access savings accounts still hold a balance of between £1 and £100. However, the number of accounts with balances under £500 has decreased in 2020, with accounts holding balances of more than £500 increasing as Brits saved more during the pandemic.

Derek Sprawling, Savings Director at Paragon Bank, said:

“As the third lockdown continues, a significant number of Brits are still seeing their expenditure go down considerably as they spend more time at home, and this is leading to record breaking savings. With building a rainy day fund a priority for many savers, people are choosing to put that money in easy access accounts so they can withdraw funds easily should they need to.

“However, this means that many savers aren’t receiving the most competitive rate of interest available. In fact, data shows that close to three quarters of easy access balances now earn a rate of 0.1% or less, amounting to a total of £403 billion’s worth of savings.

“Splitting funds between an easy access ‘rainy day’ fund and a fixed rate is a good solution for those looking to have access to money in the event of an emergency, while also ensuring they get a competitive rate on a portion of their savings.

“As we approach tax year end, I would also encourage savers not to miss out on their ISA allowance. Savings within an ISA remain tax efficient now and in the future.”

 

 

For further information contact:

Leila Taleb

Media Relations Manager

www.paragonbank.co.uk