Research showed that £16,286 per adult in cash savings is average for UK homeowners surveyed.
- Angry majority (57%) are unhappy with their saving rates
- But rate apathy is widespread, with 12% unaware what their money is earning
- One in four (27%) expect to earn 0.5% or less on savings in 2015
- Over half (53%) unwilling to accept a small level risk in exchange for higher return
According to Landbay’s latest commissioned research, over 2,000 surveyed UK homeowners are stashing away an average of £16,286. homeowners
Findings showed that 23% of the people we asked have £25,000 or more in cash savings accounts, with 15% having over £40,000. Elderly savers are keeping higher amounts in these accounts, with 19% of over-55s storing over £40,000 in cash. We estimate that homeowners combined could have as much as £433bn in savings accounts despite their dissatisfaction.
A clear majority of respondents are aware of the rate they are currently getting and are unhappy. Less than one in four are happy with their savings account interest rate. This year, 27% expect to earn 0.5% or less on their savings, and a staggering one in ten expect to earn nothing.
Apathy for the remainder
With little to get excited about, other consumers have little knowledge of the rates they earn. More than one in ten (12%) of homeowners surveyed don’t even know what rates they receive in their savings account, rising to 18% among those under-54. Older generations are more aware of their rates, but as a result have higher levels of resentment with 62% of over-55s unhappy with their savings rate.
Attitudes to risk preventing savers gaining higher rates
The lack of willingness to take risks or wait for access to savings has left many to settle for rates they are unhappy with. Our research found a majority of cash savers are risk-averse, 53% would not be willing to accept a small level of risk to savings if it meant a higher return. Despite this, a sizeable minority (39%) are open to taking at least a little risk if it means improved returns. When it comes to savings, the homeowners in the survey were overly cautious even when faced with the possibility of earning nothing on their savings in 2015.
Instant access less of a concern
One in three respondents (33%) wanted to have instant access to all their savings, however 42% are willing to wait between one to six months before accessing cash. Almost one in five (17%) would be willing to lock up their money for twelve or more months, a significant proportion aware that their instant access savings accounts do not offer the best deal for interest accumulation.
The information contained in this post should not be used by consumers to make financial decisions. Consumers have a range of different financial needs and requirements and as such should always seek independent professional financial advice before making an investment decision.