Table of Contents
Introduction
-
- Report scope and product definitions
- Key data sources and BBA product categories
- Abbreviations
Executive Summary
-
- The market
- Retail savings balances grew by 3% in 2011
-
- Figure 1: Forecast of retail savings balances, at current prices – fan chart, 2006-16
- Sub-sector performance
- Size of the ‘saver’ population
-
- Figure 2: Estimated number of retail savers in the UK, by type of account held, February 2012
- Market factors
- Macroeconomic conditions are not currently conducive to saving
- Pricing and average returns
- Competition from other asset classes
- Companies, brands and innovation
- Largest providers of savings accounts
-
- Figure 3: Top six providers of savings accounts, by estimated share of ‘main account’ customers, February 2012
- Product innovation
- Distribution mix favours online
-
- Figure 4: Channel most used to access savings account, by type of account, February 2012
- Industry adspend totalled £83 million in 2011
- The consumer
- An easy-access account is the most widely held savings product
-
- Figure 5: Ownership of cash savings products, February 2012
- More than a quarter of adults have investible assets worth over £10,000
-
- Figure 6: Total value of savings and investments, February 2012
- Most people have a clear reason for saving – even if it’s just for their peace of mind
-
- Figure 7: Main reasons for saving, February 2012
- Many savers are unimpressed by the savings rates currently on offer
-
- Figure 8: Agreement with statements about savings behaviour and attitudes, February 2012
- What we think
Issues in the Market
-
- How large is the retail savings market and how has it performed recently?
- How competitive is the retail savings landscape?
- Which sectors of the market are seeing the greatest inflows of money?
- How is the rival equity asset class faring?
Future Opportunities
-
- Develop apps that help people quickly and easily identify the best product for them
- Grabbing the attention of the under-35s with the right savings message
Internal Market Environment
-
- Key points
- Low base rate is not conducive to saving
-
- Figure 9: Average annual changes in the Bank of England base rate, CPI and RPI – UK, 2003-12
- March 2012 budget offered no change to the ISA rules
- Regular savings and fixed-term bonds offer the best rates of return
-
- Figure 10: Average monthly quoted deposit interest rates, January 2004-January 2012
- Savings ratio has picked up since the financial crisis
-
- Figure 11: Gross household savings and saving ratio, seasonally adjusted and at current prices, 2006 Q1-2011 Q4
Broader Market Environment
-
- Key points
- Summary of the main macroeconomic indicators impacting on the consumer credit market
- Household income squeeze set to continue into 2012
-
- Figure 12: Monthly change in RPI and average weekly earnings, January 2008-January 2012
- Consumer sentiment still very pessimistic
-
- Figure 13: UK consumer confidence, March 1998-February 2012
- Both saving and spending confidence remain weak
-
- Figure 14: Saving and spending confidence, March 2001-February 2012
- Two fifths of people have ‘added to their savings’ in the past three months
-
- Figure 15: Usage of disposable income – recent past and near future, February 2012
Competitive Context
-
- Key points
- Cash ISAs represent the main rival product
-
- Figure 16: Value of new ISA subscriptions, 2003/04-10/11
- Ownership of the most common types of saving and investment product
-
- Figure 17: Ownership of savings and investments, by asset type, November 2011
- Low returns on cash savings prompt more people to invest in equities
-
- Figure 18: FTSE 100 and FTSE All-Share – daily index movements, January 2003-February 2012
Market SWOT Analysis
-
-
- Figure 19: Retail savings accounts – SWOT analysis, 2012
-
Who’s Innovating?
-
- Key points
- Virgin Money aims to offer savers “good value”, with the launch of two new accounts
- Other new issues in the easy-access domain
- New accounts with restrictions on withdrawals
- Providers use higher-paying fixed-term bonds to entice savers
- Halifax launches monthly prize draw to ‘get Britain saving’
- High-paying regular saving accounts
Market Size and Forecast
-
- Key points
- Retail deposits worth over £1.1 trillion
-
- Figure 20: Retail savings balances outstanding, by sector, 2003-11
- Savers are looking beyond instant access accounts to improve their returns
-
- Figure 21: Volume and value of individual interest-bearing current and deposit accounts (MBBGs only), 2003-10
- Retail savings industry serves a large customer base
-
- Figure 22: Estimated number of retail savers in the UK, by type of account, February 2012
- Forecast
-
- Figure 23: Forecast of total retail savings balances, at current prices – fan chart, 2006-16
- Figure 24: Forecast of total retail savings balances, 2011-16
- Forecast methodology
- Fan chart explanation
Market Share
-
- Key points
- Lloyds Banking Group is number one in the savings account market
-
- Figure 25: Ranking of largest providers of savings accounts, by product sector, February 2012
- Provider rankings based on overall retail savings balances
-
- Figure 26: Providers’ total retail savings balances, shown on a group basis – UK, 2010-11
Companies and Products
-
- Lloyds Banking Group
- RBS Group
- Santander
- Barclays
- HSBC
- Nationwide Building Society
Brand Communication and Promotion
-
- Key points
- Greater adspend on cash savings products since 2007
-
- Figure 27: Total advertising expenditure on cash savings products, 2007-11
- Cash ISAs accounted for two fifths of sector adspend in 2011
-
- Figure 28: Total advertising expenditure on cash savings products, by product type, 2007-11
- The press claim the largest share of sector adspend
-
- Figure 29: Distribution of adspend on cash savings products, by media type, 2009-11
- Halifax was the highest-spending advertiser in 2011…
-
- Figure 30: Top ten advertisers of savings accounts (excluding cash ISAs), 2009-11
- … and in the cash ISA market too
-
- Figure 31: Top ten advertisers of cash ISAs, 2009-11
Channels to Market
-
- Key points
- The branch remains an important sales channel…
-
- Figure 32: UK bank and building society combined branch networks, 1998-2010
- … but online is now the preferred channel to access a savings account
-
- Figure 33: Channel most used to access savings account, by type of account held, February 2012
Ownership of Savings Accounts
-
- Key points
- Survey background
- Four in five UK adults have some form of cash savings product
-
- Figure 34: Ownership of cash savings products, February 2012
- Over-55s record the highest take-up rates…
-
- Figure 35: Ownership of cash savings products, February 2012
- … due to their greater asset holdings
-
- Figure 36: Value of investible assets, by age and gender, February 2012
- Fixed-rate bonds and notice accounts appeal most to those with substantial assets
-
- Figure 37: Value of investible assets, by type of savings product owned, February 2012
Saving Motivations
-
- Key points
- Building up an ‘emergency fund’ is the top reason for saving
-
- Figure 38: Main reasons for saving, February 2012
- Retirement is a more pressing concern among the over-55s
-
- Figure 39: Main reasons for saving, by gender and age group, February 2012
- Motivations vary depending on the type of account held
-
- Figure 40: Main reasons for saving, by type of account held, February 2012
- Wealthier savers are looking for products that offer tax benefits
-
- Figure 41: Main reasons for saving, by value of investible assets, February 2012
Saving Behaviour and Attitudes
-
- Key points
- Most savers are disappointed by the rates of returns they are getting
-
- Figure 42: Agreement with statements about savings behaviour and attitudes, February 2012
- The over-55s are more likely to scrutinise the savings rates they are getting
-
- Figure 43: Agreement with statements about savings behaviour and attitudes, by gender and age group, February 2012
Appendix – Market Forecast
-
-
- Figure 44: Forecast of total retail savings balances, best and worst case scenario, 2011-16
-
Appendix – Market Share
-
-
- Figure 45: Comparison of customer profiles for the top seven providers of savings accounts, February 2012
-
Appendix – Ownership of Savings Accounts
-
-
- Figure 46: Ownership of savings accounts, by product type and demographic sub-group, February 2012
- Profile of savings account holders
-
- Figure 47: Demographic profile of savings account holders versus total sample, February 2012
- Value of investible assets
-
- Figure 48: Value of savings and investments, by demographic sub-group, February 2012
-
Appendix – Saving Motivations
-
-
- Figure 49: Top seven reasons for savings, by demographic sub-group, February 2012
-
Appendix – Saving Behaviour and Attitudes
-
-
- Figure 50: Saving behaviour and attitudes, by demographic sub-group, February 2012
- Figure 51: Saving behaviour and attitudes, by demographic sub-group continued, February 2012
-
- Figure 52: Saving behaviour and attitudes, by demographic sub-group continued, February 2012
-
Back to top