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Households boost savings despite high inflation

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Caitlyn Eastell, Apprentice Press & PR Assistant
Caitlyn Eastell, Press & PR Executive 01603 476169 Email Caitlyn
01/09/2025

Households boost savings despite high inflation

  • According to the recent Bank of England Money and Credit report, during July households deposited £4.3 billion into interest bearing sight accounts. This is the highest since January, which stood at £5.8 billion.
  • The average easy access account currently pays 2.60% but inflation currently stands at 3.8% and is set to rise further, meaning savers are missing out in real terms.
  • In January 2025 the average easy access account paid 2.90% and inflation stood at 3.0%

 

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

 

“There has been a surge in households depositing their cash into interest bearing sight accounts during July. This could have been brought about by consumers needing quick access to cash for the summer holidays, however, the average easy access account is paying just 2.60% and while not too much harm can be done by keeping cash in a low-paying account in the short-term, it is crucial that savers don’t adopt this bad habit and shift their cash elsewhere. The top rates currently exceed 4%, which may be a more attractive option. Considering Christmas on the horizon, it will be interesting to see whether the increase in deposits can be sustained.”

Households boost savings despite high inflation

  • According to the recent Bank of England Money and Credit report, during July households deposited £4.3 billion into interest bearing sight accounts. This is the highest since January, which stood at £5.8 billion.
  • The average easy access account currently pays 2.60% but inflation currently stands at 3.8% and is set to rise further, meaning savers are missing out in real terms.
  • In January 2025 the average easy access account paid 2.90% and inflation stood at 3.0%

 

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

 

“There has been a surge in households depositing their cash into interest bearing sight accounts during July. This could have been brought about by consumers needing quick access to cash for the summer holidays, however, the average easy access account is paying just 2.60% and while not too much harm can be done by keeping cash in a low-paying account in the short-term, it is crucial that savers don’t adopt this bad habit and shift their cash elsewhere. The top rates currently exceed 4%, which may be a more attractive option. Considering Christmas on the horizon, it will be interesting to see whether the increase in deposits can be sustained.”

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

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, 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.

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

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

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, 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.

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.

 

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Adam French Head of News & Communications
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Press & PR Executive