Turning the UK back into a nation of savers
Stuart Hulme, director of savings and marketing at Hampshire Trust Bank | 16:57 Wednesday 25th April 2018
The Bank of England has indicated that it is likely to increase the bank rate in the near future, with market commentators speculating that this could be as early as next month.
When this happens, this could help push interest rates up, meaning savers could get a greater return on their cash, but on the flip side, this means borrowers may end up owing more. This is the perfect time for specialist banks to help encourage good saving habits and help turn the UK back into a nation of savers.
As a nation, we are borrowing more and saving less. According to the latest figures from the Office of National Statistics (ONS), in 2017 saving levels fell to their lowest point since records began over 50 years ago, with the households' saving ratio dropping to 4.9% as households' spending exceeded the growth of households' income. In addition, the ONS figures showed that last year UK householders were net borrowers for the first time since records began 30 years ago, turning us from a nation of savers into a nation of borrowers. This is clearly not an ideal situation.
We believe that it is important for consumers and companies alike to remain focused on making the most of their hard-earned cash and that saving accounts can help us all to invest in the future.
As part of our latest UK SME savings tracker survey, when asked what they would invest in if they made a return from their business savings, 28% said business infrastructure, while a quarter (25%) said they would use the money for research and development. This is positive to hear, so how do we encourage more people to put more money away?
First, saving habits have to be learned. Thankfully, personal finance has become a mandatory part of maths and citizenship lessons in secondary schools, with many educators recognising the importance of introducing these concepts to children as early as possible. The good news is that it's never too late to start learning. There are plenty of resources out there to help us establish better saving habits, no matter what age we are.
Second, shopping around is key. It sounds so simple, but it's a task easily overlooked. Wherever possible we should be reviewing our personal and business mortgages, loans, credit cards and other sources of borrowing to ensure we are on the best possible rate. After all, if we can cut the interest rates we pay to borrow, we will have more to save.
With spring being a season of growth, what better time is there to consider your options, shop around and ensure that this time next year you are reaping the rewards? We believe specialist banks have an important role to play in encouraging more people to save and help lift the savings ratio up once more.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
STB Commercial Finance opens Leeds office
Secure Trust Bank (STB) Commercial Finance has opened a new office in Leeds as it continues its national expansion...
Starling expands payment services and banking-as-a-service offer
Starling Bank is expanding its banking-as-a-service and payment services offer to enable other companies to offer retail banking and make payments...
Tandem launches Journey Card
Digital bank Tandem has launched a new credit card to help users who don’t have a credit history to build a strong profile...
Starling set to launch business accounts for multi-director limited companies
Starling Bank has announced that the bank would soon open its business accounts for limited companies with multiple directors...
Aldermore increases rates on business savings products
Aldermore has increased rates across its fixed rate and customised fixed rate (CFRA) business savings accounts...
Teachers Building Society amends lending criteria
Teachers Building Society has updated and amended its lending criteria to provide intermediaries with a detailed overview of its requirements for both teacher and non-teacher applicants...
What lenders look for when financing hotel projects
This week, I’ll be at the Annual Hotel Conference in Manchester where I’ll be speaking on Thursday about the funding options available to hotel businesses when it comes to financing future projects...
Bank on Dave launches funding round to support bank plans
Burnley Savings and Loans Limited – known as Bank on Dave – has launched a funding round of £2.5m on crowdfunding platform Seedrs...
Klarna partners with H&M
Swedish bank Klarna has entered into a global partnership with H&M group to further integrate H&M’s digital and physical stores...
ICC Banking Commission announces long-term agreement with GCD
The International Chamber of Commerce (ICC) Banking Commission has signed a long-term partnership with Global Credit Data (GCD) to strengthen analysis within the ICC Trade Register...
OakNorth provides £42m loan to nationwide pub operator
OakNorth has completed a £42m loan to Red Oak Taverns to support the national pub operator’s continued expansion across the UK...