• Savings deposits held by CACI member institutions increased as UK entered recession, Paragon Bank analysis finds
• Total deposits increase by £10 billion to £1.01 trillion, with non-ISA deposits topping £750 billion for first time
• Overall savings increase follows Bank of England base rate rises, with the proportion of non-ISA accounts offering less than 0.5% interest falling from 82% to 78%

Savings deposits held by CACI members increased to £1.01 trillion as the UK economy entered recession, new analysis by Paragon Bank has found.

The increase in total savings followed a £10 billion month-on-month increase in the overall value of non-ISA deposits, totalling over £750 billion for the first time (£750.03 billion).

Following rises to the Bank of England’s base rate, the proportion of Instant Access non-ISA accounts offering less than 0.5% interest fell from 82% to 78% - totalling £392 billion of all such deposits.

Rising from £200 billion, the total amount held in Instant Access non-ISA accounts offering more than 0.5% climbed to £240 billion.

The overall amount held in ISAs fell marginally by £16 million.

The analysis of the latest data, covering October 2022 and comprising the deposits of 34 leading providers, also found that the proportion of Instant Access non-ISA accounts holding up to £1,000 remained steady at 55% - with 36% of all accounts up to than £100.

Commenting on the new analysis Derek Sprawling, Paragon’s Savings Director, said: “As the country headed towards recession, savers took notice – leading to a modest rise in the value of overall deposits, but there is more that they could be doing.

“Though the overall number of open accounts offering less than 0.5% fell to 77%, it is concerning that the overwhelming number of accounts are not receiving the return that savers deserve.”

He continued: “With strong returns available from savings products provided by specialist banks, savers need not wait for Bank of England Base Rate rises before they see improved rewards on their hard-earned money.

“Rather than wait to see what the Bank of England decides, specialist banks are anticipating changes. Accordingly, I urge savers to take advantage of what is currently available and not delay their making the right decisions for their financial circumstances.”

For further information contact:

Tom Frew
Media Relations Manager
Paragon
E: [email protected]
www.paragonbank.co.uk 

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.

CACI produce an analysis of deposit stock from the main deposit banks providing data from more than 30 providers, based on individual adult cash savings. It allows us to focus on savings accounts, by combining all account types and both ISAs and non-ISAs. Unless stated otherwise, all data in this release is sourced from: CACI’s Current Account & Savings Database, as of end of September 2022.