Deposit and Savings Accounts - UK - April 2010
This report looks in detail at the retail savings market, analysing the key factors that influence the market, both at a macro level as well as the more inward-looking dynamics of how the markets have been operating during the credit crunch. Competing products like cash ISAs and equity-based investment are presented, before summarising the strengths and weaknesses in the savings market at present.
- In November 2009, FSA regulation was extended to cover banking conduct, and as a result, providers must now give customers at least two months’ notice of any adverse interest rate changes on their accounts. Mintel's focus groups show growing resentment at low interest rates - this measure could increase switching activity.
- PDI is the main driver of the savings market, and this has fallen during the recession as people have found themselves more stretched. Although we are now out of recession, there is still downward pressure on disposable incomes this year (potential tax rises after the election, rising inflation, a fragile economy, higher interest rates), which may impact people’s ability to save.
- Retail savings balances increased by just 1% (£11 billion) in 2009, compared with an increase of 5% (£50 billion) in 2008, demonstrating how low interest rates and the recession have impacted both people’s willingness and ability to save. Due to the reasons above, Mintel expects 2010 to be another tough year, with savings balances remaining flat this year and rising by just 2% in 2011.
- Consumers are looking for stability, and banks for sustainable, long-term finance. The two have combined to mean that demand for fixed rate bonds increased during the credit crunch, reversing a long-trend towards instant-access accounts.
- Mintel’s consumer research for this report shows that the large high street banks and Nationwide dominate the UK savings market, with 19.5 million people owning a savings account (excluding cash ISAs) with one of the ‘big six’ providers.
- Low interest rates and the impact of the recession in encouraging people to get their finances in order, has prompted some people to prioritise paying off debt at present. Our consumer research found that 23% of consumers are focusing on paying off their debts rather than saving at present, although 30% were planning to increase their savings over the next year or so.
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
Why buy from us?
Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.
Buy now and you'll have instant access to the information you need to make the right decisions.
Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.