About the market:

Owned by over half of the UK’s adult population, deposit and savings accounts are a vital part of the average consumer’s financial product repertoire, providing a ‘safe’ place to store extra cash. Indeed, savings accounts are also a crucial part of providers’ product offerings, as they are often used as customer acquisition tools to attract new customers to an organisation. They can also be cross-sold to existing customers, thereby increasing per customer value.

Since Mintel last reported on this market in January 2005, competition in the deposit and savings account market has continued to intensify. This is due mainly to new entrants whose competitive rates and simple products have allowed them to gain a significant amount of market share in a relatively short period. Additionally, the end of the credit boom has seen people become more cautious in their spending, preferring instead to focus on debt repayment and on saving. Indeed, ownership of savings products has increased appreciably in the last year alone, which is a symptom of a more serious approach to saving.