72% of easy access balances earning less than 0.1%

Seventy-two per cent of easy access balances in the UK are earning a rate of 0.1% or less, research from Paragon Bank has revealed.

The bank analysed CACI data and found that the total of easy access balances earning less than 0.1% is currently sitting at £403bn in savings.

Paragon suggested that these balances earning 0.1% or less steadily increased throughout 2020, growing from 19% in January to 34% in April and 40% in June, before reaching 65% in October, and 72% in November.

Paragon also highlighted Bank of England data which shows that total household deposits now stand at £1.6trn, having grown by £124bn between January and November last year. In 2019, deposits increased by less than £50bn over the same time period, marking a 148% increase in a single year.

Paragon savings director, Derek Sprawling, commented: “Despite low rates, we’re seeing many people put their pandemic savings into easy access accounts where they can access the money easily if they need to. During this climate of ongoing economic uncertainty, many savers are focused on building contingencies.

“The data also suggests that many savers have given in to inertia and aren’t looking for the most competitive deal, with many leaving their money in low-paying accounts linked to their current account.

“In today’s digital world, opening and servicing a non-linked savings account is often easier than people think. Moving money from the large high street banks has never been easier so we would encourage savers to look for the best deal for their money.”

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