More than a third of Northern Ireland savers never compare the rate on their savings account to others available on the market, despite the recent focus on interest rates, a new report has found
Research from the Building Societies Association (BSA) revealed that a quarter (25%) of consumers here never check their rates, with many people potentially missing out on free money by letting their savings languish in accounts offering paltry returns.
Interest rates
The findings, published ahead of UK Savings Week, showed that over a third (36%) of local savers hold most of their savings in a current account, which offers little or no interest. Additionally, 15% of consumers haven’t reviewed their accounts for a year or more.
According to the statistics, people in Northern Ireland saved less than any of their UK counterparts, with an average of £151 set aside locally in May compared to £200 nationally.
Declan Moore, Operations Director at Progressive Building Society, which is supporting UK Savings Week, said it was concerning that a considerable proportion of Northern Ireland people (15%) do not have a savings pot.
“We know households are dealing with a cost-of-living crisis that has stretched budgets like never before,” he said.
“During Savings Week, we want to focus on ways of saving a realistic amount of money for a rainy day, no matter how small that amount is.
“We want to help people understand how to save and how to manage their finances so that they’re in a more comfortable position.”
He added: “Our advice is to set a target savings amount each month, make it a habit and reward yourself so that you stay motivated.”
Although consumers are battling an ongoing cost of living crisis, the BSA research revealed that over two fifths (43%) of Northern Ireland adults put money aside on an ad-hoc basis whenever they have money, compared to 34% of their UK counterparts.
Meanwhile, 59% of those who save regularly feel confident that they could save an extra £120 a year on top of what they currently set aside. Almost two fifths (39%) believe they could manage an extra £600, while almost a quarter (24%) feel they could realistically save £1,200 more annually.
Robin Fieth, Chief Executive of the BSA, said the research provided interesting insights into savings habits. “Despite lots of media and government attention on savings rates, following the significant increases in the Bank Rate, it’s perhaps surprising that the level of engagement people have with their personal finances remains fairly low,” he said.
“As savings rates have been increasing, shopping around can now make a sizeable difference to the returns available.
“It’s encouraging that many of those who currently do not have any savings are confident that they can start saving every month and there are lots of different savings accounts available for all levels of savers.”
Mr Fieth said small contributions go a long way towards a savings pot, adding that starting a savings habit was key. “We all know life gets in the way and savings, understandably, can slip down the priority list,” he said.
“Putting away a set amount each month – however much you can comfortably afford – can be a great way to make it a habit and achieve your savings goals.”
