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Savers avoid big ticket spending to help grow savings pots

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  • 77% of savers to prioritise savings in 2023, Paragon Bank research finds
  • Only 9% are to prioritise big ticket purchases, with just 4% prioritising holidays
  • Fixed Rate Cash ISAs usage to increase, with 1/3 of savers set to invest more
  • 24% of savers to cut spending by more than £200 per month

Savers are set to avoid spending on big purchases and instead plan to grow their savings, new research has found.

Conducted by Paragon Bank, the research of over 2,200 savers found that 77% will make their savings pots their financial priority for 2023 - compared with only 9% prioritising big ticket items, including holidays, and 4% who plan to invest in property.

The proportion of those prioritising growing their savings is matched by those who plan to take advantage of currently available interest rates, with 78% citing the rates available today as a driver of their current financial planning.

Fixed Rate ISAs are set to play a leading role in the plans of savers. Recording the largest increase in planned usage, 33% of savers intend to increase the money invested in them – followed by 27% who plan to invest more in non-ISA Fixed Rate Savings accounts, with Easy Access Cash ISAs close behind at 25%.

Savers are also cutting their spending in response to price rises, with 24% of savers reducing their spending by over £200 per month.

Commenting on the findings Derek Sprawling, Paragon’s Savings Director, said: “After facing a sustained period of high inflation, our research shows that savers are taking action to protect their finances. 

“But prioritising their savings pots over big ticket purchases is only the fist-step savers should consider – as savers could receive a further boost if they pick the right products to help plan for their future.

He continued: “Savers should consider the advantages of long-term savings products provided by specialist banks, such as Fixed Rate Cash ISAs, which can offer interest rates in excess of the Bank of England’s base rate and help savers with future big-ticket purchases.”


For further information contact:

Tom Frew
Media Relations Manager
E: [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.