News

While the Bank of England base rate remained at 5% today, Saga is encouraging savers to review their saving plans amidst an anticipated reduction in saving rates later this year. 

As the cost of living continues to squeeze households, savers must look for ways to make their money go further with saving accounts having a real part to play. New research from Saga’s dedicated in-house research and insight team, found that 78% of UK savers hold Easy Access accounts, which offer flexibility but are vulnerable to potential interest rate reductions.  

Further, the findings from Saga’s Experienced Voices survey show a strong preference for traditional high street banks even as they continue to lag behind in offering customers the best deals. As of June 2024, UK banks held over £252 billion in accounts which do not offer any interest.  

In contrast, only 37% of those surveyed have invested in fixed savings accounts. While fixed accounts usually offer higher interest rates, they may not be suitable for all customers given money is inaccessible for a period of time.   

With 36% of over-50s also having over £100k in savings, the survey highlights how considering the best interest rates attached to savings accounts ensures that savers maximise their money through significant interest. 

Saga’s Product Director, Alex Edmans says: “Time and time again we’re seeing that loyalty isn’t being rewarded when it comes to saving with your high street bank. With the ongoing cost of living and wider economic uncertainty, people are worried about how best to protect their money.  

“We know that our customers want to maximise their savings to prioritise their saving goals. For example, this includes saving for travel and retirement for the younger over-50s, while the oldest generation is focusing on providing for their families’ future. Saga enables customers to make their money work harder to meet their goals while helping them benefit from very competitive rates.” 

To best support its customers, Saga Money is offering fixed-term rates of up to 4.85% AER through their Saga Savings Platform in partnership with Flagstone, which enables customers to easily access a range of competitive fixed rate accounts through just one application.  

With savings accounts being the most popular savings method among UK adults, Saga is well-placed to support customers with their savings goals, regardless of their needs. New customers will join thousands of others across the UK who already trust Saga with their savings, through its popular range of savings products.