Our survey of 2,000 UK adults in 2023 found that UK savers are not making the most of the various savings products available. Just over half (56 per cent) have a monthly savings account, while the vast majority (82 per cent) lack Lifetime Isas for later-life planning.
However, by taking time to search beyond the high street, it is possible to uncover products that not only safeguard their savings but also nurture financial growth.
In stark contrast to high street banks, which have faced criticism for not passing on higher rates to consumers, challenger banks and tech-based providers stand out as strong alternatives.
Capitalising on their smaller size, these innovative institutions can offer swift and responsive savings products that truly make a difference. This flexibility enables them to adapt quickly to market changes and, in turn, respond more effectively to customers’ needs.
Currently, some providers are offering returns on Isas that dwarf those offered by most high street banks, with rates close to the base rate on some fixed-term products.
Engaging with savings
Establishing a financial plan is just the beginning in securing consumers' financial wellbeing – active engagement is crucial. It is vital that savers conduct regular reviews, ensuring they stay on track with their savings goals.
Being flexible is crucial. They may need to alter their financial plan to manage unforeseen changes in personal circumstances or to cope with the knock-on effects of changes in the economic and political environment.
There are a range of innovative tools available to help keep consumers' budgets and financial plans on track.
For instance, simple yet effective saving tactics like 'round-ups', where spare change from debit card spending is directed straight into a savings account, or adopting automated saving can make a real difference.
Although younger consumers are leading the charge in embracing financial apps for various purposes, with more than half of 18 to 34-year-olds using two or more such applications, older consumers would benefit from their use.
Regular engagement with these tools not only enhances financial awareness but also equips individuals to navigate the evolving economic landscape more effectively.
While the early part of the year often symbolises a fresh start for many, the process of getting a person’s financial ducks in a row and embarking on the journey toward a secure financial position can start at any point in the year.
With the right plan and the persistence to stick to it, 2024 can be a better year.
Sam Compton is director of operations at Chetwood Financial
