CACI data analysed by Paragon Bank showed that the average savings balance now stands at a record £12,077 as savings balances have continued to grow throughout the pandemic.

Total savings stock recorded on CACI’s database, which captures data from more than 30 providers, has grown by 8% since March 2020, from £903 billion to £975 billion.

The majority of this growth has been driven by easy access non-ISA accounts, which grew by more than 16% over the course of the pandemic.

In March 2020, CACI’s easy access accounts amounted to a value of £505 billion and now stands at £588.6 billion. The market share of 60.3% marks an increase of more than four percentage points from 55.9% at the start of the pandemic.

The average easy access balance now stands at £11,603, a growth of more than £1,300 since March 2020 where it stood at £10,246. This boost in easy access balances has been against a backdrop of most other product categories being in decline.

The fixed rate non-ISA market has dipped steadily throughout the pandemic, reducing from a value of £92.7 billion and a market share of 10.3% in March 2020, to a value of £73.9 billion in June 2021 (7.57%).

Fixed rate ISAs stood at 80.3 billion in June 2021, down from £87.3 billion in March 2020, a reduction of 8%. Easy access ISAs fared slightly better and remained consistent throughout the last 18 months – they accounted for 19.5% of the market in March 2020 and now stand at 19.1%.

Another category to experience growth throughout the pandemic was the regular saver non-ISA category, which increased its market share from £11.4 billion to £16.1 billion – a massive 41%.

This is reflective of savers pumping additional pandemic savings into this type of product – which traditionally offers higher returns than standard easy access options due to limits on balances and monthly deposits.

Derek Sprawling, Savings Director at Paragon Bank, commented on the findings:

“We are seeing that people are saving at a slower pace since pandemic restrictions lifted, which is to be expected. However, saving stock continues to increase more consistently month-by-month. This makes it clear that saving remains a priority for many.

“This could be an indication that people are still feeling cautious and prioritising building contingencies and an emergency fund while the economy still feels uncertain. It will be interesting to see how this trend evolves as we see the impact of peak holiday season.

“For those still keen to continue to put money aside, we are seeing some green shoots across the savings market, with both fixed rates and now easy access accounts starting to uplift.

“Savers looking to get a decent return on any pandemic funds should make the most of those deals while they last as the market has proved volatile over the course of the last 18 months and it’s hard to predict what rates will be on offer in autumn and beyond.”

For more information about this press release, contact:

Leila Taleb - Media Relations Manager 

[email protected]