• Over £460 billion of UK savings deposits in Instant Access non-ISA accounts offering 0.5% or less, Paragon Bank analysis of the latest CACI data finds
• Deposits in Instant Access non-ISA accounts offering only 0.1% or less total more than £177 billion
• Total savings growth between June and July also down 60% on 2021, from £2.8 billion to £1.1 billion
• Total savings growth across April to July down 73% year on year, from £5.5 billion to £1.5 billion

Over £460 billion in UK savings deposits is sitting in Instant Access non-ISA accounts offering only 0.5% interest or less, new analysis has found.

The analysis, conducted by Paragon Bank of the latest CACI data, also found that deposits in Instant Access non-ISA accounts offering only 0.1% interest or less totalled over £177 billion. 

CACI’s July database, which captures savings data from more than 30 leading providers, also shows savings growth continuing to sharply decline in comparison to 2021.

The Paragon analysis of savings deposits held by CACI members from June to July found that while overall savings rose by £1.1 billion to over £996 billion the increase was a marked decline from the rise of £2.8 billion recorded over the same period in 2021.

July’s data provides further evidence of a structural decline in savings growth year on year, with a £1.5 billion increases recorded between April and July 2022 – a sharp decrease on the £5.5 billion in growth recorded over the same period in 2021.

Instant Access non-ISA Accounts holding £500 or less remained steady at 49%.

Overall, ISA savings fell across the month to £263.7 billion from £264.6 billion in June, while non-ISA savings rose further to £ 732.4 billion from £730.4 billion.

The slowdown in savings growth proceeded two separate increases of 0.5% in the Bank of England base rate following meetings of the Monetary Policy Committee in August and September respectively and the unveiling of new economic measures introduced in late September by the new Chancellor of the Exchequer, Kwasi Kwarteng. 

Commenting on July’s CACI data Derek Spawling, Paragon’s Savings Director, said:

“At a time of heightened financial pressure, it is very concerning to see close to half a trillion pounds left in Instant Access non-ISA savings accounts offering less than 0.5%.

“July’s CACI figures continue to show that savers should be doing whatever they can to find the right financial products for their circumstances, as there are still too many relying on high street providers when there are already more competitive rates and products, including ISAs, available to them.”

“Although ISA growth was subdued of late, higher rates make this segment a likely growth area in future.”

For further information contact:

Tom Frew
Media Relations Manger
Paragon
E: [email protected]
www.paragonbank.co.uk 

Notes to editors:

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.