Brits increase savings deposits by three times the growth seen in Eurozone countries amid Covid

  • Brits deposited an additional £145.4 billion in their current and saving accounts in 2020, a growth of 170% in year-on-year savings compared to 2019.
  • Meanwhile, additional savings in the Eurozone increased by nearly half (48%) in 2020, with savers depositing over £500 billion for the first time.
  • The high growth in savings volumes will create additional customer demand for attractive third-party deposit products.

Hamburg, 22. February 2021 – New research published by Open Banking platform Deposit Solutions shows that Brits deposited £145.4 billion of additional savings in their current and saving accounts in 2020. This is the highest amount saved nationwide in a single year, representing a growth of 170% in year-on-year savings, far greater than seen in Eurozone countries.

In the Eurozone, additional savings increased by nearly half (48%) in 2020 from the previous year. That is under a third of the percentage increase seen in the UK, despite deposit volumes in the euro-area growing by over £500 billion for the first time.

“Lockdowns and economic uncertainty have turned the UK into a nation of savers, with Brits saving more than twice as much in 2020 than the year before – the highest annual growth on record,” commented Mark Davison, Managing Director and Country Head, UK & Ireland at Deposit Solutions. “British savers, often renowned for putting less of their wages away, increased their account balances by £2,200 on average last year, the highest year-on-year growth in savings per person in Europe since the onset of the pandemic.”

In comparison to the UK, French savers grew their account balances by nearly £2,000 per person, increasing their year-on-year savings by 72% compared to 2019. German savers, on the other hand, saw an increase of just 37% (£1600 more per person than the previous year).

“People across Europe are depositing more and more money in their bank accounts, with many of these savers earning very low or zero interest on their balances,” adds Mark Davison. “Due to the global crisis at hand, it is easy to understand that savers are preferring to keep their money parked in their accounts. However, with the remarkable increase in savings volumes last year, we expect an increasing demand for secure and competitive interest-bearing products. Where banks are unable to offer attractive rates themselves, they will have to provide third-party products to retain their customers.”

Last year, a poll by Deposit Solutions found that over half (52%) of UK consumers, as well as two-thirds (63%) of consumers aged 18 to 34, find the idea of their primary bank acting as a marketplace appealing, offering access to third-party products, including savings accounts. With two-thirds (63%) of respondents identifying getting the highest interest rate as the most important factor when switching savings provider, British banks need to diversify their deposit offerings to retain valuable customer relationships.

The UK has the second biggest deposit market in Europe at a volume of £1.56 trillion after Germany (with £2.27 trillion).

About the analysis:

All figures in the publication ‘2020 European Deposit Market Spotlight – Annual Report’  were calculated based on aggregated data from the European Central Bank, the Bank of England, the Federal Statistical Office, Eurostat and Barkow Consulting. The research examined the development of retail bank deposits in the Eurozone and the United Kingdom.

The analysis conducted in May 2020 was based on a survey of 2,000 UK adults, drawn from nationally representative sample weighted on age, gender, region, social grade and employment status. The research has been conducted by Opinium, and the analysis performed by Deposit Solutions unless otherwise stated.

About Deposit Solutions:

Deposit Solutions is a globally recognized FinTech company and the Open Banking platform for deposits. Its proprietary Open Banking technology provides an infrastructure for the global USD 50 trillion deposit market that benefits banks and savers alike. Deposit Solutions is already connecting more than 80 banks from 16 countries and additionally operates proprietary B2C Points-of-Sale (ZINSPILOT and Savedo) that market selected deposit offers of its partners directly to savers. Founded in 2011 by Tim Sievers, the company is headquartered in Hamburg, has additional offices in London, Zurich and Berlin and employs a team of over 250. Deposit Solutions is backed by leading tech investors such as Vitruvian Partners, Kinnevik, e.ventures, Greycroft, FinLab, Peter Thiel, Top Tier Capital Partners, Apeiron Investment Group and Angel Investor Stefan Wiskemann. For further information please visit: http://www.deposit-solutions.com/

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