• Savings growth falls by two-thirds compared with 2021, Paragon Bank analysis of June’s CACI data finds
• Overall savings deposits held by CACI members increased by £400 million to £995.1 billion from May to June, compared £1.2 billion rise in 2021
• Almost 50% of Instant Access non-ISA Adult savings accounts hold £500 or less, with 37% holding £100 or less
• Amount held in Instant Access non-ISA Adult accounts with rates of 0.1% or less fell to £242.6 billion

UK savings growth fell in June by almost 70% compared to 2021, new analysis by Paragon Bank has found.

The analysis of savings deposits on CACI’s database, which captures savings data from more than 30 leading providers, from May to June found that while overall savings rose by £400 million to £995 billion, the increase was a marked decline from the rise of £1.2 billion recorded over the same period in 2021.

Overall ISA savings fell marginally to £264.6 billion from £265.8 billion in June, while non-ISA savings rose to £730.4 billion from £728.9 billion.

June’s figures also revealed that 49% of Instant Access non-ISA savings accounts held £500 or less, with 37% holding £100 or less.

The latest data showed a further fall in the overall amount held in Instant Access non-ISA accounts offering interest rates of 0.1% or less to £242.6 billion from £303.8 billion in May as providers increase rates following a series of Bank of England Base Rate increases. 

The decline in savings growth coincided with the UK economy contracting by 0.1% in the second quarter, following a fall in economic output across June and a rise in inflation from 9.0% to 9.4% from May.

Commenting on June’s CACI data Derek Sprawling, Paragon’s Savings Director, said:

“June’s CACI data provides further reason to believe that savings growth is becoming more challenging. Inflation is starting to hit home, and further energy price rises are only going to put increased pressure on household budgets. Given these conditions, it is imperative that savers do what they can to protect the value of their savings and find the best rates and products, including ISAs, available for their circumstances and to look beyond high street providers.”

He added: “While our analysis continues to find a decline in the overall value of savings held in accounts offering less than 0.1% interest, that there is over £242 billion not being put to best use demonstrates that there is more that savers could be doing to help meet price rises - and I urge them to take proactive steps to protect their savings.”

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.