Consumers urged to overhaul their savings habit

Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel

Consumers urged to overhaul their savings habit

Consumers with cash lying dormant could instil the savings habit by opening a regular savings account. Moneyfactscompare.co.uk encourages consumers to overhaul their savings habits to achieve their goals.

Consumers urged to overhaul their savings habit

Saving little and often remains the key to instil the savings habit; if someone saved £50 a week for seven weeks, they would amass £350. Savers could amass £500 if they saved £25 a week for 20 weeks.
Consumers could look towards a regular savings account to instil the savings habit for 2025. The top 12-month fixed term regular savings account pays 7%, available to new customers, and would earn savers £116 if the monthly £250 deposits are maxed out.
Savers should consider moving their cash out of a current account if it is earning no interest and into a savings account instead. A recent study by the Bank of England revealed £252bn is sitting in UK current or savings accounts earning no interest.
Households have a little bit more cash to play with, according to the Office for National Statistics (ONS). The household savings ratio was estimated at 10% during Q2 2024, up from the previous quarter.

Saving little and often remains the key to instil the savings habit; if someone saved £50 a week for seven weeks, they would amass £350. Savers could amass £500 if they saved £25 a week for 20 weeks.
Consumers could look towards a regular savings account to instil the savings habit for 2025. The top 12-month fixed term regular savings account pays 7%, available to new customers, and would earn savers £116 if the monthly £250 deposits are maxed out.
Savers should consider moving their cash out of a current account if it is earning no interest and into a savings account instead. A recent study by the Bank of England revealed £252bn is sitting in UK current or savings accounts earning no interest.
Households have a little bit more cash to play with, according to the Office for National Statistics (ONS). The household savings ratio was estimated at 10% during Q2 2024, up from the previous quarter.

Top interest paying regular savings accounts - Returns over one year
Provider, rate and term	Operation method	Min reg deposit	Max reg deposit	Savings at maturity if £50 is invested every month for one year	Savings at maturity if £150 is invested every month for one year	Regular savings account notes
The Co-operative Bank - 7.00% AER / gross - 12 months	Branch, Internet, Mobile App, Telephone	N/A	£250	£623.24	£1,869.73	Variable rate, fixed term, paid on maturity. Minimum £1 initial deposit. New and existing Current Account Customers. Maximum investment £3,000.
Principality Building Society - 7.00% AER / gross - 12 months	Branch, Internet, Postal	£1	£125	£623.24	£1,869.73	Fixed rate paid on its anniversary. Minimum £1 initial deposit. Maximum investment £1,500. Earlier access on closure only.
Nationwide Building Society - 6.50% AER / gross - No fixed term	Internet, Mobile App	N/A	£200	£621.55	£1,864.65	Variable rate paid on its anniversary. Minimum £1 initial deposit. New and existing Current Account Customers. Lower rate of 2.15% paid for rest of term if 4 or more withdrawals made. Reverts into instant access savings account after 12 months.
NatWest - 6.17% AER / 6.00% gross - No fixed term	Branch, Internet, Mobile App, Telephone	N/A	£150	£619.86	£1,859.59	Variable rate paid monthly. No minimum initial deposit. New and existing Current Account Customers. Lower rate of 1.60% AER / 1.59% gross paid on balances over £5,000. (Account also available through RBS)
Melton Building Society - 6.00% AER / gross - matures 30.9.26	Branch, Postal	N/A	£200	£619.86	£1,859.59	Variable rate paid yearly. No minimum initial deposit. Maximum investment £6,000. Unused subscriptions from previous months cannot be made up in subsequent months.
West Brom Building Society - 6.00% AER / gross - 12 months	Branch	£10	£250	£619.86	£1,859.59	Fixed rate paid on its anniversary. Minimum £10 initial deposit. Maximum investment £3,000. Unused subscriptions from previous months cannot be made up in subsequent months.
Market Harborough Building Society - 6.00% AER / gross - matures 30.11.25	Branch, Internet, Postal	£10	£250	£619.86	£1,859.59	Fixed rate paid on maturity. Minimum £10 initial deposit. Maximum investment £3,750. Reverts into an easy access account if a payment is missed pa. Post opening and operating for under-18s only.
TSB - 6.00% AER / gross - 12 months	Branch, Internet, Mobile App, Telephone	£25	£250	£619.86	£1,859.59	Fixed rate paid on maturity. Minimum £25 initial deposit. New and existing Current Account Customers.
Deals shown allow deposits to be made for at least one-year. Excludes linked-funded accounts, and existing members or locals only accounts. Savings at maturity is an estimation, on gross rate. Source: Moneyfactscompare.co.uk

Top interest paying regular savings accounts - Returns over one year
Provider, rate and term	Operation method	Min reg deposit	Max reg deposit	Savings at maturity if £50 is invested every month for one year	Savings at maturity if £150 is invested every month for one year	Regular savings account notes
The Co-operative Bank - 7.00% AER / gross - 12 months	Branch, Internet, Mobile App, Telephone	N/A	£250	£623.24	£1,869.73	Variable rate, fixed term, paid on maturity. Minimum £1 initial deposit. New and existing Current Account Customers. Maximum investment £3,000.
Principality Building Society - 7.00% AER / gross - 12 months	Branch, Internet, Postal	£1	£125	£623.24	£1,869.73	Fixed rate paid on its anniversary. Minimum £1 initial deposit. Maximum investment £1,500. Earlier access on closure only.
Nationwide Building Society - 6.50% AER / gross - No fixed term	Internet, Mobile App	N/A	£200	£621.55	£1,864.65	Variable rate paid on its anniversary. Minimum £1 initial deposit. New and existing Current Account Customers. Lower rate of 2.15% paid for rest of term if 4 or more withdrawals made. Reverts into instant access savings account after 12 months.
NatWest - 6.17% AER / 6.00% gross - No fixed term	Branch, Internet, Mobile App, Telephone	N/A	£150	£619.86	£1,859.59	Variable rate paid monthly. No minimum initial deposit. New and existing Current Account Customers. Lower rate of 1.60% AER / 1.59% gross paid on balances over £5,000. (Account also available through RBS)
Melton Building Society - 6.00% AER / gross - matures 30.9.26	Branch, Postal	N/A	£200	£619.86	£1,859.59	Variable rate paid yearly. No minimum initial deposit. Maximum investment £6,000. Unused subscriptions from previous months cannot be made up in subsequent months.
West Brom Building Society - 6.00% AER / gross - 12 months	Branch	£10	£250	£619.86	£1,859.59	Fixed rate paid on its anniversary. Minimum £10 initial deposit. Maximum investment £3,000. Unused subscriptions from previous months cannot be made up in subsequent months.
Market Harborough Building Society - 6.00% AER / gross - matures 30.11.25	Branch, Internet, Postal	£10	£250	£619.86	£1,859.59	Fixed rate paid on maturity. Minimum £10 initial deposit. Maximum investment £3,750. Reverts into an easy access account if a payment is missed pa. Post opening and operating for under-18s only.
TSB - 6.00% AER / gross - 12 months	Branch, Internet, Mobile App, Telephone	£25	£250	£619.86	£1,859.59	Fixed rate paid on maturity. Minimum £25 initial deposit. New and existing Current Account Customers.
Deals shown allow deposits to be made for at least one-year. Excludes linked-funded accounts, and existing members or locals only accounts. Savings at maturity is an estimation, on gross rate. Source: Moneyfactscompare.co.uk

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Consumers debating whether to start a savings pot should act now, it is never too late to overhaul their usual habits. Taking just one step can mean all the difference to set out a secure path to feel more in charge of their financial wellbeing. Building an emergency fund or saving for a specific goal is simple and easy to do and there are plenty of accounts designed for various needs. Regular savings accounts are ideal for slowly building a pot as they instil the savings habit. Those with a fixed term, say of 12 months, define a clear target for savers building a pot, such as those who may want to put cash aside for Christmas. Those who have struggled to save this year could kick-start the habit for 2025 and can then rely less on short-term credit to cover festivities.

“Savers may find it convenient to stash their cash in their current account, but the stark reality is that these do not work hard enough for earn decent interest, nor do they really offer the right structure to instil the savings habit. A recent study by the Bank of England revealed £252bn is sitting in UK current or savings accounts earning no interest, which is shocking. Another study by the Office for National Statistics (ONS) revealed the household savings ratio was estimated at 10% during Q2 2024, up from the previous quarter. This means consumers have a bit more disposable income, but that it’s likely lying dormant, and is slowly being eaten away by inflation. Consumers need to shake any apathy they have and take a step back to decide how their money could work harder for them, especially if they have future aspirations.

“Longer-term savings goals may seem a bit of a pipe dream for some savers, particularly those looking to build a deposit as a first-time buyer. It’s a daunting task for many, and recent statistics from The Money Charity revealed it takes around 13 years to save for a deposit. However, there are ways to boost deposits, such as opening a variety of savings accounts, which can offer flexibility where needed, but also those which are stricter on regular deposits to encourage the savings habit. There are also Lifetime ISAs which offer a Government bonus of 25% on the savings stashed, but savers need to check the eligibility criteria carefully if they do intend to use this to plump up their house deposit or face a withdrawal penalty. Consumers ready to get started would be wise to explore the latest top rate tables and read up on some tips and guides to help them on their savings journey.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

Notes to editors

Pioneering financial comparison technology for over 35 years.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Rachel Springall Press Officer / Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Apprentice Press & PR Assistant

01603 476169

Email Caitlyn

Consumers urged to overhaul their savings habit

Consumers urged to overhaul their savings habit

Ask us a question!