Savings accounts: Are you losing out by being loyal?

We recently commissioned a new study in collaboration with our sister site, Be Clever With Your Cash[1]. We surveyed UK savers to understand more about their approach to saving money and the savings decisions they’re likely to make in the future.

Here’s what we found out.

The main results at a glance

• Savers aged under 35 stay with their provider for nearly four years but move jobs every 2.5 years[2]
• Half (50%) of savers aged under 35 don’t know their current interest rate
• Most savers are looking to jump provider (88%), driven by wanting to earn a higher interest rate (68%)
• 45% of savers believe they’re not rewarded for their loyalty

How likely are UK savers to move providers?

85% of people reported having some savings and the median balance worked out at £12,501[3].

Most people said that the prospect of interest rates falling later this year is the main trigger to consider switching to a new provider. 88% told us they want to move their savings pot in the next six months with 68% of those driven to switch by wanting to earn more interest.

Our study found the majority of people keep their savings in either an easy access account (28%) or an ISA (27%). This highlights that some savers may not be benefitting from the best available deals currently on the market. This is understandable though as there are so many savings products on the market that can change very quickly.

If you want to maximise your money and make sure you’re getting the best interest rate for your savings, check out Be Clever With Your Cash’s best buy table. It covers everything from easy access savings accounts to fixed interest savings helping you find the best account for your circumstances.

Are younger savers loyal to their savings provider?

Our study found that savers aged under 35 stay with their provider for nearly four years but move jobs every 2.5 years.

On the surface, this seems to show loyalty to their current provider. But 66% of young savers are considering moving their savings in the next six months ahead of expected interest rate decreases.

Our study shows that even if they’ve been with the same provider for a while, when the time feels right many young savers will vote with their feet. They’re prepared to go and find themselves a new savings account with a better interest rate.

Do UK savers feel rewarded for their loyalty by their savings provider?

Nearly half (45%) of savers believe they’re not rewarded by savings providers for their loyalty. But despite this, some people aren’t moving their savings because they don’t think it’s worth the hassle (24%).

Our study also found there’s still work to do for savings providers to make it easier for consumers to understand their products. 17% of UK savers reported they don’t know what to do as there are too many savings products on the market.

If you’re finding it hard to understand all your different savings options, our handy savings account quiz will help. In just one minute, answer some simple questions and we’ll give you an idea of which savings account is right for you.

How do younger savers feel about their interest rates?

Although under 35s reported having an average of £6,375 in savings, half (50%) told us they don’t know what their current interest rate is.

To keep your money working hard for you, it’s important to check you’re still receiving the best interest rate. You can then move your savings pot to a better account if needed.

But it’s not just the interest rate to consider when deciding where to move your money to. How easy it will be to manage your account and the level of customer service you’re likely to receive are just some of the other areas to look into.

At Smart Money People, we’re the UK’s most comprehensive financial services review site, making it easy to research your options. People like you tell us about their experience of financial products and providers helping others make better decisions about what to buy.

[1] Smart Money People commissioned a survey of 2,000 UK adults who have a savings account. The OnePoll survey ran 12–16 April 2024. OnePoll is an MRS Company Partner.

[2] According to CareerBuilder.com Millennials stay in a job for 2 years 9 months and Gen Z stay in a job for 2 years 3 months = 2 years 6 months on average

[3] UK Savings Week 2023 data found 15% of people don’t have any savings