Young adults are being encouraged to check whether their savings are working as hard as they could during UK Savings Week, after new research found many rarely look at the interest they are earning.
Research carried out for UK Savings Week, which runs from 21-27 September, found that while saving can boost young people’s wider financial confidence, many remain with the same bank or building society and rarely compare accounts.
More than half, 51%, of 18–34-year-olds who save said having savings had made them more confident when dealing with other areas of their finances. However, six in ten young savers, 61%, said they were still with their first bank or building society. This compares with 35% of savers aged 55 and over.
More than a third, 36%, said they never check the interest rate they are receiving on their savings, while 34% never compare their rate with other accounts.
The research also found that 38% of younger savers keep most of their savings in their current account, compared with 15% of people aged 55 and over. Depending on the account, this could mean their money is earning little or no interest.
The findings suggest that developing a savings habit can be an important first step, but regularly checking where money is held and what return it is earning can also make a difference.
Richard Ingle, CEO at Bath Building Society, said, “Starting to save is a positive step, but it’s easy to put savings on autopilot. UK Savings Week is a great opportunity to take a fresh look at your savings. A simple check of your account, interest rate or regular payments could help you feel more in control and move closer to your financial goals.
“We’re encouraging our customers to use UK Savings Week as a prompt to take a fresh look at their savings and see if there is one small change they could make that will help them move towards their financial goals.”
UK Savings Week aims to encourage people to develop and maintain a regular savings habit, as well as making sure the money they have already saved is being held in an account that suits their needs.
