- 5.7m Brits resolve to switch savings account in 2017, as only 8% are sure they’re on best rate.
- In 2016, 40% of British savers collectively spent 35 million hours researching best savings rate.
- Masthaven welcomes its 1,000th saver – only weeks since it opened its digital doors.
New research from the challenger bank Masthaven, reveals that many savers are losing hope that their main bank will deliver, with just one in three savers (29%) saying that they trust them to provide a good rate. Now millions seem to have lost patience and resolve to switch accounts in 2017.
The survey of over 2,000 UK adults found British savers are not confident in the returns they make on their money, with just 8% very confident that they are getting the best savings rate. The majority (61%) are not confident or unsure if they are getting the best rate.
Almost a third (29%) of savers admitted that they stick with their main bank and trust them to deliver a good rate, and a similar number (27%) have been put off shopping around saying there are poor deals everywhere, while 18% admitted they just can’t keep up with the [savings account] market.
Although almost a quarter (23%) say they do actively seek out good rates, a fifth (22%) of those who are not confident they’re on the best rate said they are likely to switch in 2017 – this is the equivalent to 5.7m (5,673,100) UK adults who intend to switch saving account this year.
The survey by Opinium for Masthaven found two-fifths (40%) of savers had switched or thought about doing so in 2016 - this is equivalent to 17m (16,891,528) UK adults researching switching for 35m (35,463,264) hours in total within the last 12 months.
Taking the leap
Masthaven says many savers are confident to take the leap from traditional banks to the challengers. Since it launched on 28 November 2016, more than 1,000 savers have moved their money to take advantage of the bank’s competitive rates; collectively contributing in excess of £40m in deposits.
Jon Hall, Managing Director of Masthaven, said: “Masthaven is delighted to welcome its 1,000th saver so soon after launch. This milestone emphasises how many customers are simply not getting what they want from traditional savings accounts, and when that’s the case they will move their money to get a better deal.
This sentiment is reinforced by our latest consumer research – millions of savers in the UK are losing patience, and have resolved to switch saving accounts in 2017 to find a better rate. Masthaven is proud to be able to challenge the traditional banking market with competitive savings rates – helping people to make the most of their savings.”
The Masthaven Flexible Term Saver account challenges banking convention by allowing people to decide the date when their savings account matures. The combination of competitive rates and ease of use means savers can take advantage of a fixed term rate over a timeframe that suits their lifestyle.
Designed to help savers meet their short or long-term goals - whether that’s a holiday or wedding anniversary or a future event such as university fees or house deposit - customers can use a sliding scale to pick any date between six months and five years to create their personalised fixed term end date. They can also decide whether they prefer to receive interest annually or monthly.
Research by Masthaven on savers chasing the best rates to stay ahead in 2017 was covered in several publications including Moneyfacts, Financial reporter and Yahoo! Finance.