Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

UK Deposit and Savings Accounts market report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Deposit and Savings Account market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Products covered in this report

The focus of this report is retail deposit and savings accounts for the adult market. Cash ISAs and current accounts are the subjects of separate reports, although these will also be covered here due to their close affiliation, particularly cash ISAs. Children’s savings accounts will not be covered here, and are again the subject of a separate report.

There are various types of deposit and savings account available to UK adults. The main ones are as follows:

  • easy access (or instant access) savings account – the most widely available and commonly held type of account, which does not impose any restrictions on making withdrawals and provides either a variable interest rate or a fixed/guaranteed interest rate for an introductory period
  • notice account – this is where the account holder must give a certain number of days’ notice before making a withdrawal so as not to lose any interest
  • fixed-term/fixed-rate savings account or bond – offers a fixed rate for a fixed term, usually between one and five years
  • regular savings account – where the account holder is required to make regular monthly payments (usually ranging from £25 to £250 or £500 a month) in return for a higher interest rate
  • cash ISA (individual savings account) – similar to ordinary savings accounts, in that there are different varieties (eg instant access, fixed term), but all interest earned is paid tax free. In 2017/18, individuals aged 16+ can invest or save up to £20,000 in an ISA.
  • National Savings & Investments (NS&I) – provide a range of tax-free cash savings products, backed by HM Treasury, the most popular of which are Premium Bonds.

Also covered in Mintel’s consumer survey, but not included in the market size data (retail balances):

  • offshore savings account – this is where the account is set up and run by a bank, or a bank’s subsidiary, based outside of the UK, usually in the Channel Islands, the Isle of Man or Ireland. Offshore accounts can offer certain tax benefits and multi-currency options, but are not covered by the UK’s Financial Services Compensation Scheme.

Competitor products include:

  • Peer-to-peer saving – peer-to-peer lending websites work by matching up savers (known as ‘lenders’) directly with people or small businesses looking to borrow – at interest rates agreed by both parties.
  • High interest current account – a current account that offers comparatively high rates of interest (ranging from 1% to 5% AER) on in-credit balances, usually up to a set limit. They often come with strings attached (eg minimum monthly deposits, minimum number of direct debits), and may charge a monthly fee.

Expert analysis from a specialist in the field

Written by Sarah Hitchcock, a leading analyst in the Fincancial Services sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Savers are having a grim time, with an ultra-low base rate and rising inflation making it near-impossible to achieve a real return. The introduction of funding schemes by the Bank of England has also reduced banks’ reliance on retail deposits, removing the pressure to aggressively compete. Many savers, therefore, are turning to alternative products, such as high interest current accounts and peer-to-peer lending, in pursuit of better yields. Sarah Hitchcock
Senior Financial Services Analyst

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Savings deposits forecast to grow by around 3% annually
              • Figure 1: Forecast of total retail savings deposits, 2012-22
            • Interest bearing sight deposits account for 45% of the market
              • Figure 2: Share of household retail savings balances, by main product type, 2017
            • Savings ratio falls to historic low
              • Figure 3: Household savings ratio, 2008-17
            • Competition in the cash savings market
              • Companies and brands
                • Lloyds Banking Group has the greatest share of customer deposits
                  • Figure 4: Providers’ total retail savings balances at year end, shown on a group basis – UK, 2016-17
                • Providers respond differently to base rate increase
                  • Microsaving tools could tackle savings crisis
                    • Adspend doubles in 2018
                      • Figure 5: Above-the-line, online display and direct mail advertising expenditure on cash savings products, by type of product, 2014-18
                    • The consumer
                      • Four in five have a cash savings account
                        • Figure 6: Ownership of cash saving products, February 2018
                      • Unstructured approach to saving makes it hard to set goals
                        • Figure 7: Approach to saving, February 2018
                      • Online access is a priority
                        • Figure 8: Attitudes towards managing savings, February 2018
                      • Rising interest rates could lead to an increase in savings activity
                        • Figure 9: Impact of interest rates on savings behaviour, February 2018
                      • Positive levels of interest in digital saving innovations
                        • Figure 10: Interest in various digital saving innovations, February 2018
                      • What we think
                      • Issues and Insights

                        • Younger consumers more reactive to rising interest rates
                          • The facts
                            • The implications
                              • Pent-up demand for digital saving innovations
                                • The facts
                                  • The implications
                                    • Adapting to people’s saving approach is key to personalisation
                                      • The facts
                                        • The implications
                                        • The Market – What You Need to Know

                                          • Savings deposits forecast to grow by around 3% annually
                                            • Interest bearing sight deposits account for 45% of the market
                                              • Savings ratio falls to a historic low
                                                • Competition in the cash savings market
                                                • Market Size and Forecast

                                                  • Annual growth in deposits drops to 3%
                                                    • Figure 11: Total retail savings deposits, 2007-17
                                                  • Savings deposits forecast to grow by around 3% annually
                                                    • Figure 12: Forecast of total retail savings deposits, 2012-22
                                                    • Figure 13: Forecast of total retail savings balances, at current and constant prices, 2017-22
                                                  • Forecast methodology
                                                  • Market Segmentation

                                                    • Interest-bearing sight deposits account for 45% of the market
                                                      • Figure 14: Household retail savings balances, by main product type, 2013-17
                                                    • Time deposits fall by 4%
                                                      • Non interest-bearing deposits grew by 8%
                                                      • Market Drivers

                                                        • Competition in the cash savings market
                                                          • Interest rates begin to rise
                                                            • Figure 15: Effective interest rates on household deposit balances versus official bank base rate, January 2010-February 2018
                                                          • Average rates still below inflation
                                                            • Figure 16: Annual change in the Consumer Price Index (CPI) and average weekly earnings (year on year 3 months average), January 2012-March 2018
                                                          • Nearly a quarter have no savings
                                                            • Figure 17: Value of savings and investments, February 2018
                                                          • Savings ratio falls to a historic low
                                                            • Figure 18: Household savings ratio, 2008-17
                                                          • Open Banking
                                                          • Companies and Brands – What You Need to Know

                                                            • Lloyds Banking Group has the greatest share of customer deposits
                                                              • Providers respond differently to base rate increase
                                                                • Microsaving tools could tackle savings crisis
                                                                  • Adspend doubles in 2018
                                                                  • Market Share

                                                                    • Lloyds Banking Group has the greatest share of customer deposits
                                                                        • Figure 19: Providers’ total retail savings balances at year end, shown on a group basis – UK, 2016-17
                                                                      • More people look elsewhere for fixed-rate or notice accounts
                                                                        • Figure 20: Savings product provider used, by product type, March 2018
                                                                      • Majority only use one savings provider
                                                                        • Figure 21: Number of different savings providers used, by age, March 2018
                                                                    • Competitive Strategies and Innovation

                                                                      • Providers respond differently to base rate increase
                                                                        • Microsaving tools could tackle savings crisis
                                                                          • AI-based affordability saving
                                                                            • Rounding up
                                                                              • Savings ‘pots’ give people greater control over their savings
                                                                                • Current account interest on balances falling
                                                                                • Advertising and Marketing Activity

                                                                                  • Adspend doubles in 2018
                                                                                    • Figure 22: Above-the-line, online display and direct mail advertising expenditure on cash savings products, by type of product, 2014-18
                                                                                  • Halifax accounts for 30% of total adspend
                                                                                    • Figure 23: Top 15 advertisers of above-the-line, online display and direct mail advertising on cash savings products, 2015/16-17/18
                                                                                  • TV share of spend continues to rise
                                                                                    • Figure 24: Share of above-the-line, online display and direct mail advertising expenditure on cash savings products, by type of media, 2015/16-2017/18
                                                                                  • Nielsen Ad Intel coverage
                                                                                  • The Consumer – What You Need to Know

                                                                                    • Four in five have a cash savings account
                                                                                      • Unstructured approach to saving makes it hard to set goals
                                                                                        • Online access is a priority
                                                                                          • Rising interest rates could lead to an increase in savings activity
                                                                                            • Positive levels of interest in digital saving innovations
                                                                                            • Ownership of Cash Saving Products

                                                                                              • Four in five have a cash savings account
                                                                                                  • Figure 25: Ownership of cash saving products, February 2018
                                                                                                • Higher-value savers have a greater variety of accounts
                                                                                                  • Figure 26: Ownership of cash saving products, by value of savings, February 2018
                                                                                                • Higher penetration of accounts among over 55s
                                                                                                  • Online saving pots could appeal to younger generations
                                                                                                    • Figure 27: Repertoire of ownership of cash saving products, February 2018
                                                                                                • Approach to Saving

                                                                                                  • Unstructured approach to saving makes it hard to set goals
                                                                                                      • Figure 28: Approach to saving, February 2018
                                                                                                    • Financial pressures challenge structured saving activities
                                                                                                      • Figure 29: Approach to saving, by age, February 2018
                                                                                                    • Lower earners find it difficult to save regularly
                                                                                                      • Figure 30: Approach to saving, by household income, February 2018
                                                                                                  • Attitudes towards Managing Savings

                                                                                                    • Savings protection is key
                                                                                                        • Figure 31: Attitudes towards managing savings, February 2018
                                                                                                      • Online access is a priority
                                                                                                        • People look beyond their main provider for restricted access accounts
                                                                                                          • Figure 32: Agreement with the statement ‘I have a savings account with a provider other than my main current account provider’
                                                                                                      • Impact of Interest Rates on Saving Behaviour

                                                                                                        • Rising interest rates could lead to an increase in savings activity
                                                                                                            • Figure 33: Impact of interest rates on savings behaviour, February 2018
                                                                                                          • Most people are likely to stay put
                                                                                                            • Timed account holders more likely to switch
                                                                                                              • Figure 34: Agreement with the statement ‘I am considering moving some savings to another provider or product that offers a better rate’, February 2018
                                                                                                            • Financially healthy Millennials more open to alternative providers
                                                                                                                • Figure 35: Target groups based on attitudes towards saving – CHAID – Tree output, February 2018
                                                                                                            • Interest in Digital Saving Innovations

                                                                                                              • Positive levels of interest in digital saving innovations
                                                                                                                  • Figure 36: Interest in various digital saving innovations, February 2018
                                                                                                                • Younger generations more interested in digital saving innovations
                                                                                                                  • Figure 37: Interest in various digital saving innovations, by age, February 2018
                                                                                                                • Financial strugglers interested in automated saving
                                                                                                                  • Figure 38: Interest in various digital saving innovations, by financial situation, February 2018
                                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                  • Abbreviations
                                                                                                                    • Consumer research methodology
                                                                                                                    • Appendix – Market Size and Forecast

                                                                                                                        • Figure 39: Best and worst case forecast scenarios for total retail savings deposits, 2017-22