British savers have put a record amount of money aside during May 2020 as the Covid-19 lockdown entered its fourth month, but nearly 40% of easy access balances are earning a rate of 0.1% or less.

According to data analysed by Paragon Bank, easy access balances grew by £8.4billion in May 2020. However, saving balances earning a rate of 0.1% or less have nearly doubled since the lockdown came into effect.

In February 2020, 21% of easy access balances were earning 0.1% or less, adding up to a total of £104 billion. This has steadily increased during the lockdown period and a total of £204 billion is now earning a low rate of interest – a total of 39% of all easy access savings.  

This trend comes as Brits’ easy access saving account balances continue to swell during lockdown.

The balances of easy access accounts have grown by a total of £19.5billion since February 2020. This is four times more than the amount saved during the same period in 2019, which totalled up to only £5.4billion.

Derek Sprawling, Director of Savings for Paragon Bank, said: “The fact balances earning a rate of interest of 0.1% or less have doubled since the start of lockdown indicates that people have either given in to inertia or are unaware of the low rate on their easy access accounts. Even when rates are low, it’s still important for people to shop around and seek the best deal on their savings.

“In today’s digital world, moving money around to get a better deal is easier than ever and managing a non-linked savings account is often more straightforward than people think. To facilitate this, we offer accounts across a range of access channels including online, telephone and postal services.”

For further information contact:

Leila Taleb

Media Relations Manager

[email protected]