The deposit and savings account market in the United Kingdom has experienced significant changes in the past 12 months. The clement economic conditions combined with low interest rates, the increase in house prices and the instability of cash since the 2000 stockmarket crash, have driven consumers away from saving and encouraged them into a spending culture.

In this phenomenon, deposit and savings accounts compete directly with tax-exempt cash ISAs, fixed-rate bonds, National Savings & Investments and, indirectly, with alternative and non-traditional investment vehicles.

Direct and indirect investment in residential and commercial property rise since the mid-1990’s, has increased further since the troubles in the stock market in 2002-03.

However the recent rise in the bank base rate and the speculation about a slowdown in the housing market, have altered people’s priorities in terms of spending and saving, creating demand for mortgages and credit products.