· Brits saved an estimated £75.5 billion in lockdown, with 73% of people taking the opportunity to save
· Two fifths (41%) have been saving more than normal
· Millennials saved the most out of all reported age groups – averaging around £2,200 each
Lockdown left millions confined to our homes, and while we could still do some normal things- like exercise, domestic chores, watching tv, relaxing on the sofa – our ability go out and spend was severely impacted. Aside from online shopping and an occasional trip to the supermarket – spending habits changed dramatically due to Covid-19.
According to research carried out by Atom Bank, we’ve become a nation of savers. Of those that have been saving more in lockdown, two thirds (62%) have saved more by staying at home and shopping less. A further 60% saved due to restaurants and pubs being closed and a third (35%) saved from not commuting to and from work. One in three (30%) also saved money by making their own lunches.
Since March, Brits stashed away around £75.5 billion pounds, which equates to an average £1,974 for each adult in the UK. That figure was highest amongst millennials – who averaged around £2,200 each. And just over two fifths (41%) say they’ve been saving more since the global pandemic struck. While the amount of money being tucked away is eye watering, the same can’t be said about the interest we are receiving on it.
As the economy continues to suffer from the effects of Covid-19, the Bank of England has embarked upon several rounds of rate cuts to stimulate spending, leaving savers with an average return of just £1.94 each. In fact, the current average interest rate on savings accounts – across the Big Six Banks in the UK – now stands at just 0.01%.
While the majority of people (62%) view savings accounts as a place to safeguard money, just 21% think they are a genuine investment opportunity, or a place to grow their money. Of those that used lockdown as an opportunity to save, half (50%) said they’ve been putting it in an instant savings account. However, just over two in five customers (42%) could not confidently say what the interest rate is on their account, meaning many are left unaware of how their money is, or rather isn’t, performing.
When it comes to interest rates offered by banks, 1 in 2 people (46%) said they would describe the state of interest rates as bad and that they couldn’t generate any additional money.