According to new research from UK Finance, more people are saving their money in easy access savings accounts.
The industry body found that deposits held in instant access accounts in June 2019 were 2.5 per cent higher than the same month a year ago.
The data in the latest Household Finance Update also showed that deposits in savings accounts which require notice of a withdrawal or ringfence savings until they have matured are down by 2.4 per cent year-on-year – despite often offering the best rates.
While rates are often lower on an easy access savings account, growing competition in the marketplace means that there are now at least three providers who offer rates of up to 1.5 per cent.
Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “The growth in easy access deposits year-on-year reaffirms the view that savers are being cautious when it comes to keeping their cash accessible.
“It’s positive to see a rise in deposits and hopefully this means savers are thinking about setting aside more cash in case of emergencies.”
Steve Horton, Partner at Milsted Langdon Financial Services, said: “The fact that savers are making regular deposits is certainly to be welcomed although it is important to take a considered approach when balancing relative risks with a return on investment – and sadly a great many instant access accounts pay only paltry interest rates.
“At Milsted Langdon Financial Services, we use asset allocation techniques to minimise the risk and maximise the opportunity for investment return, with every investment portfolio specifically tailored to match each client’s investment profile.
“Whatever type of investment you are looking to make, taking professional advice and ensuring you understand the numerous options available to you is the first important step.”
For investment and savings advice, please contact us.