20 August 2024, LONDON –

A new survey by personal finance comparison site finder.com has revealed that the average interest rate Brits are getting on their easy-access savings accounts is 2.39%. The best rate* available is 5.2% – double what the average UK saver is earning now. While 2 percentage points difference might seem minimal, over the course of a year, it can add up.

The average savings amount Brits have in a dedicated easy-access savings account is £7,784. Over a year, if you had this in the best easy access savings account, you’d make £405 in interest. This is £219 more than you’d get from an account paying 2.39% (£186 over a year).

Those losing out include 1 in 4 savers (24.9%) who are earning less than 1.5% in interest. Someone with the average savings in this group could be leaving at least £288 on the table. And if the account earns no interest at all, that’s £405 of free money the average saver is missing out on, based on the latest rates.

Finder’s researchers uncovered a concerning trend when they analysed Brits’ savings habits and knowledge. A quarter (25%) don’t know what their interest rate is, and a substantial amount (14%) aren’t saving at all.

Older generations not capitalising on their savings

The data shows a clear, predictable correlation between age and savings balances, with older homeowners generally having larger savings pots. Baby boomers and the silent generation have an average of £11,875 in savings, which is £7,610 more than gen Z’s average savings pot of £4,265.

However, the older generations were the most likely age group to not know what their savings rate is (31%) despite having the largest savings pots. In contrast, only 15% of gen Z savers were unaware of their savings rate, making them the savviest of all age groups surveyed.

Women were almost twice as likely (32%) to not know their interest rate as men (18.5%).

Commenting on the findings, Liz Edwards, money expert at finder.com, said:

“These findings are a wake-up call for UK savers as they show many are not making the most of their savings. In today’s economic climate, it’s crucial to be proactive about securing the best returns on your money. It’s also worth seeing if you can get a better deal by opting for a fixed-rate account, if you don’t need easy access to your money.

“With some banks already cutting rates following the recent base rate adjustment, now is the time to compare your options and switch to better deals. In addition to ensuring you’re getting the best interest rate on your savings, taking advantage of current account switching deals is an easy way to earn some extra cash.”

Methodology:

Finder commissioned Censuswide in August 2024 to carry out a nationally representative survey of adults aged 18+ to find out average savings pot amounts and savings rates. A total of 2,000 people were questioned.

The “best available” savings rate was determined by analysing all easy access savings rates without withdrawal limits and without bonuses or other special circumstances limiting the availability of the rate to consumers.

*Best savings rate determined as the best available for someone with £7,785 in savings. This was currently deemed to be the Ulster Bank Loyalty Saver, which pays 5.2% interest for those who have over £5,000. Variable interest rates are subject to change at any time.