Some consumers may find their household spending has fallen since the Coronavirus lockdown and may be considering a savings account to put aside the additional cash. Indeed, according to research by the Centre for Economics and Business Research (Cebr), average monthly household spending has fallen by 30% and stands £795 lower than pre-lockdown. Scaling this up by the number of households in the UK, this equates to £23 billion in excess savings expected in Q2 2020 if scaling back on expenses continues.
If savers are looking to put the extra cash into a straightforward savings vehicle, they may be looking at easy access accounts, however, they may be unwise to wait too long to open an account. Indeed, the latest research from Moneyfacts.co.uk reveals that savers’ speed is vital to acquire the best deal, as month-on-month the average rate of the top 10 best easy access accounts has fallen from 1.23% to 1.15%. If the top deals get swamped by consumers’ excess cash, it could also lead to cuts or withdrawals so providers can cope with demand or as they reach their funding requirements.