Give your savings a check-up, advises Bath Building Society CEO
New research for UK Savings Week, (21st -27th September) reveals that, while having savings could be giving young adults a confidence boost beyond their bank balance, many could be missing opportunities to make more of the money they have already put aside.
More than half (51%) of 18–34-year-olds who say their savings habits have boosted their confidence in dealing with other areas of their finances.
But the research also suggests that once people have started saving, they can become comfortable with where their money is held and don’t check whether their savings are still working for them. Six in ten (61%) 18–34-year-old savers say they are still with their first bank or building society, compared with just over one in three (35%) of those aged 55+.
Interest rates
More than a third (36%) of young savers say they never check the interest rate they are earning, while a similar number (34%) never compare the savings interest rate with other accounts available.
Almost four in ten young savers (38%) say they keep most of their savings in their current account, compared with just 15% of savers aged 55+, meaning they may be earning little or no interest on their hard-earned cash.
These findings highlight that building a savings habit is only the first step. Taking a few minutes to check where savings are held, the interest they are earning and whether the account still meets their needs could help people make more of the money they have already saved.
Richard Ingle, Chief Executive Officer at Bath Building Society, said, “Starting to save is a positive step, but it’s easy to put savings on autopilot. UK Savings Week is a great opportunity to take a fresh look at your savings. A simple check of your account, interest rate, or regular payments could help you feel more in control and move closer to your financial goals. We’re encouraging our customers to use UK Savings Week as a prompt to take a fresh look at their savings and see if there is one small change they could make that will help them move towards their financial goals.”
The research was conducted by Opinium on behalf of the Building Societies Association.
To learn more about Bath Building Society savings accounts, visit: bathbuildingsociety.co.uk
Pictured: Richard Ingle, CEO at Bath Building Society
