UK: Number of savings accounts at 18-month high

The number of saving accounts available to consumers hit the highest level since January 2016 in July 2017, according to a Moneyfacts UK Savings Trend Treasury Report.

The report states that the number of saving products available has increased to 1,700. Moneyfacts praised the news as a win for consumers, saying the increase in saving accounts gives customers more choices of a wide range of saving products. The additional accounts also means there is more competition, meaning several institutions are beginning to offer more competitive rates in a bid to attract or retain customers.

The driver of the increase in accounts has been challenger banks, particularly in the fixed rate space.

The increased interest in the savings space seems to be reflected in RFi Group data, which shows 30% of savers plan to open a new savings account in the next 12 months, up from 24% at the same time last year. After a period of subdued interest in savings accounts in 2016 due to the low rate environment, consumers are starting to consider them again now that rates are expected to pick up and there is renewed activity from a range of providers.

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