More people have bank accounts but one in ten have no cash savings, FCA survey reveals

22nd May 2025

The Financial Conduct Authority (FCA) has found that one in ten people have no cash savings at all, and another 21% have less than £1,000 to draw on in an emergency.

The regulator's research also shows that one in four people in the UK have low financial resilience, meaning that they have missed payments, are struggling to keep up with commitments, or don't have savings to help them through difficulties.

However, there is also good news. The FCA found when consumers seek support it makes financial pressures more manageable. Of the 1.7 million people who had used a debt advice or debt management service in the previous 12 months, 61% said their debts were more manageable as a result. Lenders also have a range of options available to help people struggling with repayments.

There has also been progress on access to basic banking services such as an increase in consumers who hold current accounts and a reduction in people being denied basic bank accounts. There are also more people banking online or with a mobile app. 1.2 million adults (2%) were digitally excluded, a dramatic improvement from 6.9 million (14%) in 2017.

Even those who are better off could take steps to improve their long-term financial health. 61% of people with more than £10,000 in investible assets held at least three-quarters of these assets in cash, rather than investments. The FCA wants to see more people holding mainstream investments to improve long-term returns.

Looking towards retirement, the FCA's survey found that one-third (33%) of adults with a defined contribution pension have less than £10,000 saved.

In light of these findings, the regulator is urging consumers to reach out to their lender if they're struggling with their payments and get help with pensions and investment decisions to improve their long-term financial health.

As part of its new strategy, the FCA is working to improve people's access to help, guidance and advice so that everyone can access the support they need, at a cost they can afford, to make informed decisions for their financial future.

Sarah Pritchard, Executive Director of Consumers and Competition at the FCA, commented:
'Our data shows that finances are stretched for many - with some unable to save for a rainy day. And we know that some do not have the confidence to invest. But there are improvements - more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.'

Oliver Morley, Chief Executive at the Money and Pensions Service, which provides the MoneyHelper service, says:
'People who experience individual financial wellbeing are less stressed about money which in turn has positive effects on their health, relationships, and work. Through MoneyHelper - our free and impartial service - we can help make your money and pension choices clearer by cutting through the complexity, explaining what you need to do and how you can do it.

'I'd encourage anyone who is worried about their money or pensions to visit www.moneyhelper.org.ukLink is external and join the millions of people who have been supported.'

The FCA is helping consumers through:

New rules for a new form of support so that consumers can be guided on how to make the most of their pensions and to invest with greater confidence, without taking costly personalised financial advice.

Helping consumers to make better-informed investment decisions through its InvestSmart campaign.

Supporting the government to develop a national plan for financial inclusion.

Continuing to set high standards across financial services through the implementation of the Consumer Duty.

Driving better value for money in workplace pension schemes.
Scrutinising the insurance sector to make sure people get fair value, for instance on pure protection and premium finance.

In the latest survey, only 8.6% of people received financial advice on investments, pensions or retirement planning in the previous 12 months, while 17% had used government-backed guidance services such as MoneyHelper over the same period - showing that many more could benefit from guidance and support.

The number of unbanked adults has decreased from 1.1 million in 2022 to 0.9 million in 2024.

Applications for basic bank accounts have risen, while refusal rates have declined. In the 2 years to May 2024, 2.4% of adults recollected applying for a basic bank account, of whom 10% said they were refused.

7% of day-to-day account holders (3.3m) didn't bank online or use a mobile app (22% or 10.6m in 2017) (99% of day-to-day account holders use a current account)

The FCA's strategy aims to see a higher proportion of consumers (with £10K+ in investible assets) holding mainstream investments, helping people save for later life.
39% of adults have unsecured debts, with a median amount of £2.5k.

One-third (33%) of adults with a defined contribution pension have less than £10,000 saved, and another 12% don’t know how much they have saved.

Only a third (33%) of DC pension holders have thought a lot about how they are going to manage in retirement, and almost 4 in 10 (38%) don’t know how much they or their employer are contributing.

1.6 million adults (3%) had received support from mortgage or credit lenders to assist with repayments in the previous 2 years.

Our vision to 2030 includes deepening trust in us as a regulator and in the financial services sector. 39% of adults had confidence in the UK financial services industry, and 36% thought most financial firms are honest and transparent in the way they treat them. 63% of consumers who were aware of the FCA had a moderate to high level of trust in us to protect their best interests.

Note
In Highland think about saving with the Hi-Scot Credit union.
Hi-Scot Credit union