Savers stashing the cash at home - Savings - News - Moneyfacts

News

Savers stashing the cash at home

Savers stashing the cash at home

Category: Savings

Updated: 11/03/2013
First Published: 11/03/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Millions of savers' are turning their backs on providers, keeping at least £5.2 billion at home 'under the mattress', according to a survey by the Financial Services Compensation Scheme (FSCS).

The compensation scheme, which protects savers' money up to the value of £85,000 in the event of their savings provider going bust, estimated that a large number of people are choosing to stash considerable amounts of cash in their homes.

Although the average amount saved at home has fallen to £196.80, from £217.92 this time last year, 2% of people confessed to storing more than £1,000 in their homes.

The findings suggest that many savers have lost faith in placing their hard-earned cash with a bank or building society, particularly following a series of scandals to rock the industry of late.

The mis-selling of payment protection insurance and the fixing of Libor rates, as well as record low savings rates and high inflation, have tested customers' loyalty and patience, resulting in higher numbers of people keeping their money at home.

Chief executive of the FSCS, Mark Neale, said: "In the unlikely event of a bank, building society or credit union failing, the vast majority of customers will get their money back within seven days.

"There really is no need to keep it under the bed."

What next?

Compare the best savings rates
Search all notice savings accounts
Search all cash ISAs
Calculate how much you could save each month

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!
 
Close