91Ï㽶»ÆÉ«ÊÓƵ

UK savings statistics for 2024 from the Bank of England (BoE) indicate that people deposited £8.3 billion into fixed-rate bonds and ISA accounts in August 2023, this was down from £10.3 billion in July of the same year.

Savings are a crucial part of money management. Whether it’s putting money aside for a particular purchase in mind, or building up a rainy day pot for something unexpected, comparing savings accounts will ensure you select the one that is right for you.

Our research has gathered the most recent UK savings statistics, encompassing topics such as how much UK households have deposited as savings. The data collected helps reveal what proportion of a person’s income should be saved, along with the reasons why people put money away.

Quick overview of UK savings statistics 2024

• The mean average amount of money held in a UK savings account is £17,365. ÌýÌýÌýÌýÌý

• Up to a third (34%) of adults had either no savings (or less than £1,000) in a savings account.ÌýÌýÌýÌýÌý

• Around six in 10 (61%) UK adults save money either every or most months.ÌýÌýÌýÌýÌý

• Almost two-thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money.

• Savings accounts are the most popular savings method among UK adults, with over half (57%) using these to save money.Ìý

• Men have more savings on average than women across every age group. ÌýÌý

UK savings market statisticsÌýÌýÌýÌýÌýÌý

UK savings statistics for 2024 show that UK households deposited a net amount of £0.3 billion with banks, building societies and into NS&I accounts in July 2023. The following month, in August 2023, sums deposited were equal to the sums withdrawn, essentially meaning that net deposits were measured at zero. This represents a significant downturn in saving compared to the previous year with the corresponding inflow of deposits for September and October 2022 standing at £8.1 billion and £6.2 billion, respectively.Ìý

A breakdown of monthly deposits in savings accounts over time

The interest rate on new fixed-rate bonds and ISA accounts for households with banks and building societies increased from 4.94% in July to 5.12%. In the same vein, the rate on existing accounts climbed by 0.24%, from 2.94% in July to 3.18% in August. Additionally, the rate for easy access savings accounts went up from 1.66% in July to 1.83% in August.

During August 2023, net deposits from UK households into National Savings and Investment (NS&I) accounts came to £0.3 billion, compared with £7.7 billion a month later in September – the highest level since August 2020, when the figure reached £9.8 billion. The corresponding figures for September and October 2022 were £0.8 billion and £0.2 billion respectively.Ìý

The combined seasonally adjusted net flow for both bank and building society deposits and NS&I accounts in August 2023 stood at zero (a decrease of £0.3 billion from July), well below the £1.5 billion average during the previous six months. For September 2022, the figure was £8.9 billion dipping to £6.4 billion in October.

For a deeper dive into the condition of the UK savings market, visit our UK savings market trends page for more statistics on average savings and wealth.

How much does an average person have in savings?Ìý

UK savings account statistics revealed that the mean average amount of savings in a UK savings account is £17,365. However, as always, average figures hide the gap between the ‘haves’ and the ‘have-nots’.Ìý

One in seven (13%) people in the UK revealed they have nothing in their savings, whereas a third (33%) of UK savers said they would struggle to cover a month’s worth of living expenses if they lost their primary source of income.Ìý

As of Q3 2021, UK households saved an average of 8.3% of their post-tax income (including benefits), which was down from 12.4% in Q2 2021 and 22.8% in Q2 2020.Ìý

Between 2000 and 2015, the UK rate of savings fluctuated between 7-10%, with a recent, pre-Covid peak of 12% in Q1 2010.Ìý

According to savings stats from the FCA, up to a third (34%) of UK adults had either no savings, or less than £1,000 in a savings account. This equates to around 22.8 million people with very little or no money to fall back on. This figure was skewed towards the younger population, with under half (47%) of 18-24 year-olds having less than £1,000 in their savings account.

According to a survey by the Money and Pensions Service (MaPs), around a quarter of UK adults (11.5 million people) have less than £100 in their savings account, with one in six people having no savings at all.Ìý

According to recent credit card statistics, two in five people who use credit are anxious about how much they owe, with over a third worried about the number of different products they already have.

MaPs also found that four in every five people (81%) avoid discussing their finances with someone, with just over a fifth (21%) saying they are fearful of being judged by others. Conversely, just under a fifth (19%) were worried about being a burden to others, with 17% citing shame/embarrassment.Ìý

To align with the MaPs ‘Nation of Savers’ national goal, adults of working age (18-66) are categorised into different groups based on their financial security status, two of which are ‘The Struggling’ and ‘The Squeezed’.

The ‘struggling’ vs. the ‘squeezed’

(Source: MaPs)

According to the UK Strategy for Financial Wellbeing, there are 11.1 million adults across the country who fall into one of these two categories. This equates to over half (56%) of all working-age adults in the UK, and 61% of the total adult population, who are classed as inadequate savers.Ìý

The national target is to encourage two million more people to save regularly by 2030.

Other aims of the UK strategy for financial wellbeing include:

• Reducing the number of people often using credit to buy food and pay bills by two million

• Ensuring that five million more people understand enough to plan for and cope in later life.

If you’re looking to save more money, but not sure how, our guide to financial advisor help could help point you in the right direction and help in setting your savings goals.Ìý

How much should people save?

Managing your savings is a highly personalised process. How much you save will depend on the specific reason for saving and the associated time frame.Ìý

• Less than a year - can be used to target a holiday, buy a specific gift, or pay one-off, larger bills (e.g. car insurance).Ìý

• Less than a decade - might be to cover the cost of large expenditures, such as making a downpayment on a house or replacing something significant that breaks (e.g. a boiler).Ìý

• Lifetime - putting money away for retirement through a lifetime ISA account, for example.Ìý

Generally speaking, between 10-15% of your income should go towards a comfortable retirement fund. If you have employer contributions, then this can help reduce the burden (i.e. they contribute 5% and you contribute 5%).Ìý

As a rule of thumb, you should establish an emergency fund that can cover up to nine months of your living expenses. This is to account for loss of income should you lose your job, yet still allows you to cover your basic survival costs (i.e. accommodation, bills, food etc.).Ìý

Another theory is to follow the 50/30/20 rule, where:

• 50% of your income should go towards necessities (i.e. needs).Ìý

• 30% goes towards desirable purchases (i.e. wants).Ìý

• 20% goes into a savings account (either retirement, emergencies, or a particular financial goal).Ìý

Using this method, up to half of your money is fixed on the non-negotiable aspects of living that you cannot avoid paying out for, such as mortgage/rent, household bills, and groceries.Ìý

You may opt for more than 20% towards savings, which is fine and could benefit you in the long run. But any less, and this may mean a longer saving period towards your ultimate saving goals.Ìý

The other way to view this is to consider your age bracket. Here is a rough estimate of how much you should be putting into retirement savings by decade, based on the average annual UK wage of £32,292, as of November 2022.Ìý

How much of your salary should you save? (Exclusive data)

The bottom line is, there is no hard-and-fast rule with regards to how much people should save. Whether it’s 5%, 20%, or more, putting money away today will help prepare you for a more financially secure future.Ìý

A breakdown of attitudes and feelings between regular and non-regular savers

The Financial Wellbeing Survey 2021 found that 61% of UK adults save money either every, or most, months. These people are defined as ‘regular savers’.Ìý

Those in the habit of not saving regularly are much more likely to experience financial issues in other areas of their lives, including:

• Susceptibility to a dramatic reduction in income, with almost two-thirds (65%) claiming they wouldn’t be able to last three months without borrowing money.Ìý

• Keeping up with bills—70% would struggle with this, while over two-thirds (69%) would find it a burden.Ìý

• Reduced happiness—a quarter (25%) of non-savers feel less satisfied with life, and less than a fifth (18%) aren’t happy with their financial situation.Ìý

• Increased anxiety—just under a third (29%) of those who aren’t saving regularly claim they feel more anxious with regards to money.Ìý

• Reduced confidence in managing their money, with more than one in six (61%) admitting they no longer feel confident doing so.ÌýÌý

Regular saving provides good financial resilience for your future. Those who do save regularly are:Ìý

• Almost twice as likely to be able to cope with a significant loss of income and keep up with paying bills, as well as less likely to find this a burden (42%).

• More satisfied with their life as a whole (44%).

• Less anxious about finances (29%).

• Almost twice as confident in managing their money compared to non-savers.Ìý

Why do people save money?Ìý

The majority of UK adults (57%) have savings in place for no particular purpose, and are just accumulating money to use sometime in the future (i.e. a rainy day).Ìý

Reasons why people save moneyÌý

(Source: MaPs)

Just under half (44%) are saving for unexpected expenses or consequences should it happen, compared to just over a third (35%) who are saving with a specific event/expense in mind.Ìý

Slightly more than a quarter (26%) are using their savings to supplement their retirement, with just over a fifth (21%) safeguarding for the future should their income change.Ìý

Other ways to save moneyÌý

As of June 2022, 82% of people surveyed across the UK were turning off lights in a bid to save money during the cost of living crisis. This was the most popular method for saving money, followed by turning off electrical goods on standby (70%) and eating out less than usual (64%).Ìý

A breakdown of different ways of saving money and the percentage of UK people who use that method

More than half of people stated they were looking to reduce their consumption habits, such as takeaways (58%), food shopping (56%), and household appliance usage (53%).Ìý

A breakdown of the best apps for saving money (exclusive data)

(Source: money.co.uk via Sensortower via 42matters.com)

Of all the available apps for saving money, Revolut sits at the top in terms of global downloads (1.3 million). This is almost twice as many as second-placed Idealo, with 700,000.Ìý

As of December 2022, Monzo is the third most popular downloaded app for saving money, with 200,000 downloads. This is twice as many as fourth-placed Starling Bank, with 100,000. Money management app Plum is in fifth, with 80,000 downloads across Android and iOS devices in 2022.Ìý

Android was slightly more popular than iOS as the source of apps for saving money (1.4 million vs 1.3 million), with around 50% of Android and iOS downloads attributed to Revolut alone.Ìý

Our guide to stocks and shares apps available on the market can help with learning how to choose shares and trade, and run a portfolio from the comfort of your screen.

Glossary