The deposit-based savings industry has experienced the most turbulent period in its history during the course of the past 18 months. Indeed, the credit crunch and global banking crisis has precipitated the sad demise of several high-profile and long-established savings institutions including Bradford & Bingley, Northern Rock and the Dunfermline Building Society, while a number of eminent banks have been forced to rely on billions of pounds of taxpayers’ money in order to stay afloat.
However, in spite of the current turmoil, the savings account market remains a key sector within the wider financial services industry. This partly relates to the fact that deposit-based savings accounts are among the most widely held of all the different financial products. Indeed, around 31 million adults currently hold a deposit or savings account, which clearly represents a sizeable customer base.
This report provides an assessment of recent trends within this sector. It analyses market data, considers the prospects for future growth and reports industry views on a range of issues. In addition, it provides analysis of Mintel’s independently commissioned consumer research, which identifies the proportion of adults who own a deposit account; establishes the penetration of savings accounts by brand; and considers attitudes towards a number of salient saving-related issues. Main findings of the research
Mintel’s research found that more than six in ten adults currently hold a deposit-based savings product.
Instant-access accounts are the most popular savings products, with exactly half of the population holding such an account, while a third of the consumer base own a cash ISA.
Halifax is the leading player within the deposit-based savings market, with one in five savers holding an account with the former building society.
Furthermore, almost four in ten savers hold a deposit account with at least one of the savings brands within the combined Lloyds Banking Group.
A greater proportion of savers said that accessibility issues would influence their choice of savings account than said they would choose an account simply on the rate of interest.
One in five deposit account holders were found to appreciate the convenience of managing their savings over the internet.