Households boost savings despite high inflation

2nd September 2025

According to the recent Bank of England Money and Credit report, during July households deposited £4.3 billion into interest bearing sight accounts. This is the highest since January, which stood at £5.8 billion.

The average easy access account currently pays 2.60% but inflation currently stands at 3.8% and is set to rise further, meaning savers are missing out in real terms.

In January 2025 the average easy access account paid 2.90% and inflation stood at 3.0%

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said, "There has been a surge in households depositing their cash into interest bearing sight accounts during July.

This could have been brought about by consumers needing quick access to cash for the summer holidays, however, the average easy access account is paying just 2.60% and while not too much harm can be done by keeping cash in a low-paying account in the short-term, it is crucial that savers don't adopt this bad habit and shift their cash elsewhere.

The top rates currently exceed 4%, which may be a more attractive option.

Considering Christmas on the horizon, it will be interesting to see whether the increase in deposits can be sustained."