6th August 2019 – Consumers are not receiving the best deals and rates for their savings by staying with the same account, according to research1 from the Current Account Switch Service, in its white paper on the savings account market.
The white paper, commissioned to understand consumer needs, reveals that 13 per cent of all savings accounts were switched in the last three years, as many consumers are reluctant to swap to different products.
The research found the introduction of a savings switch service, based on a similar model to the Current Account Switch Service, could benefit both financially savvy consumers and those with simpler requirements. It shows 56 per cent of under 45s who have a savings account said a switch service was very appealing, rising up to 60 per cent among regular savers and those with multiple saving products.
The most common barrier people experience as they consider switching is inertia, with consumers aware of providers who offer products that better suited their needs, but they don’t feel an impetus to look at their options, select the most appropriate, and initiate the switch.
Easy-access savings accounts in the UK had a total balance of £354 billion in 2015, with 33 per cent of it held in accounts opened more than five years ago, according to the latest FCA market study.2
The Current Account Switch Service aim is to enable a well-functioning market and ensure people can find and switch to the financial products that meet their needs. Further discussion is needed in this complex area of financial services and the Switch Service welcomes further engagement with stakeholders about switching in the savings account market.
Matthew Hunt, COO of Pay.UK, owner and operator of the Current Account Switch Service, said: “I’m pleased that CASS continues to provide evidence that helps us all to understand how to make financial services work better for consumers. Our research suggests that a savings account switch service might contribute to making the market more efficient and it could help customers who wanted to switch their savings to an account that better matched their needs.”
The white paper, published today, is available to read here: https://www.wearepay.uk/wp-content/uploads/2019/08/SavingsPaper-Final.pdf
The Current Account Switch Service can be contacted at CASS@mhpc.com
Ends
Press contact
Henry Conner / Calum MacDougall
0203 128 8733
About the Current Account Switch Service:
Key features of the Current Account Switch Service include:
About Pay.UK:
Pay.UK (previously the New Payment System Operator) maintains and develops the UK retail payment systems and standards that are core to the economy being able to function on a day-to-day basis. We are the leading authority for retail payments, working in the public interest to ensure that the systems the country relies on for its banking transactions are safe, open, innovative and resilient.
Our payment systems underpin the services that enable funds to be transferred between people and institutions. In 2018, the UK’s retail payment systems processed 8.8 billion transactions worth £7 trillion through Bacs Direct Credit, Direct Debit, Faster Payments, and cheques.
Every day, individuals and businesses use the services we provide to get their salaries, pay their bills and make online and mobile banking payments. Our vision for the future is to enable a vibrant economy, with Pay.UK delivering the best-in-class payment infrastructure and standards for the benefit of consumers and businesses nationwide.
Log in to access complimentary passes or discounts and access exclusive content as part of your membership. An auto-login link will be sent directly to your email.
We use an auto-login link to ensure optimum security for your members hub. Simply enter your professional work e-mail address into the input area and you’ll receive a link to directly access your account.
Instead of using passwords, we e-mail you a link to log in to the site. This allows us to automatically verify you and apply member benefits based on your e-mail domain name.
Please click the button below which relates to the issue you’re having.
Sometimes our e-mails end up in spam. Make sure to check your spam folder for e-mails from The Payments Association
Most modern e-mail clients now separate e-mails into different tabs. For example, Outlook has an “Other” tab, and Gmail has tabs for different types of e-mails, such as promotional.
For security reasons the link will expire after 60 minutes. Try submitting the login form again and wait a few seconds for the e-mail to arrive.
The link will only work one time – once it’s been clicked, the link won’t log you in again. Instead, you’ll need to go back to the login screen and generate a new link.
Make sure you’re clicking the link on the most recent e-mail that’s been sent to you. We recommend deleting the e-mail once you’ve clicked the link.
Some security systems will automatically click on links in e-mails to check for phishing, malware, viruses and other malicious threats. If these have been clicked, it won’t work when you try to click on the link.
For security reasons, e-mail address changes can only be complete by your Member Engagement Manager. Please contact the team directly for further help.
