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Easy access accounts continue to grow market share as fixed rates dip 

CACI data analysed by Paragon Bank showed that easy access non-ISA savings have grown their market share consistently throughout the last year, and now account for a record 60% of the total savings market.

Savings balances recorded on the CACI database, which records data from over 30 providers including the biggest banks, shows that the easy access non-ISA market has grown by £80 billion since the pandemic began in March 2020, an increase of 14%.

The market share of 60.1% marks an increase of more than four percentage points from 55.9% at the start of the pandemic in March 2020. Prior to that, the easy access market had remained fairly steady, increasing by less than a single percentage point between March 2019 and March 2020.

Another product to perform particularly well over the course of the last 18 months has been the regular saver non-ISA category, which grew by 23% and now represents 1.6% of the market (up from 1.3% at the start of the pandemic).

The fixed rate non-ISA market, on the other hand, has dipped steadily throughout the pandemic, reducing from 10.3% in March 2020 to 7.69% in May.

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

“While Bank of England data shows that the rate households are saving is slowing down as pandemic restrictions lift, easy access balances have continued to grow at a rapid pace throughout the pandemic.

“We are seeing a gradual uptick in rates and best-buy deals on easy access, however 72% of easy access balances are still receiving a rate of 0.1% or less, which shows that savers aren’t hunting for the best deal.

“A large share of easy access balances continues to sit with high street banks, despite those traditionally offering much lower rates than average. Challengers and mid-tier providers, on the other hand, are usually at the top of the best-buy tables. They offer savers the opportunity to more than double their returns as the providers that target proactive savers compete with each other.

“We are also seeing rates across the fixed rate market pick up, so it will be interesting to see the impact this has on that category’s market share as we progress into autumn.”

For further information about this release contact:

Leila Taleb

Media Relations Manager

Paragon Bank

[email protected]