"While the majority of deposit/savings account holders may leave their financial arrangements unchanged, there is also a considerable amount of change underway in this market sector."

Extract from this report

With increased consumer confidence in the UK, there has been a lower savings ratio over the past few years, although the number of interest accounts has virtually doubled over the past six years. The entry of a wide range of new providers has seen an increase in aggressive marketing activity for what may have been regarded as one of the more passive forms of financial services. Many are offering new channels of distribution and fiercely competitive terms, and as a result several of the previous market divisions have gone and most of the main banks and building societies offer notice and tiered rate interest savings deposit accounts. A wider range of distribution channels have led to both cost reduction and a much greater flexibility in service and telephone banking facilities have become widespread, enabling greater movement of funds between accounts. Most current accounts also now pay interest on credit balances. With the consumer placing a great emphasis on being able to gain access to their savings, how does the market for deposit & savings accounts fit in with financial services in general? The ten banks of the MMBG account for 75% of private deposits, yet many are putting less emphasis on deposit accounts in their marketing, preferring to concentrate on other investment business. Does this create further opportunities for new entrants?

· Some 14% of adults have opened a deposit account in the last twelve months.

· How far is customer loyalty being maintained in the face of new competition?

· How knowledgeable are savings account customers, and what motivates them?

Comparing brand share of deposit and other accounts, this report estimates the value of individual savings accounts in the UK. What makes financial customers choose a particular deposit account provider? Deposit & Savings Accounts explores consumer attitudes and behaviour and determines what range of savings UK consumers have, looking at average amounts for different types of households. With case studies highlighting some of the key market developments, this report also publishes findings from a series of informal trade interviews among a range of leading providers. Deposit & Savings Accounts forecasts the savings ratio for the forthcoming years and predicts how cyclical this might become.

Other Mintel reports of interest include:

- Student Banking, Finance Intelligence, February 2000

- Money Transmission Preferences, Finance Intelligence, January 2000

- Premium Banking, Finance Intelligence, November 1999

- Special Report, Branding in Financial Services, May 1999.