Trillions of Pounds ‘Languishing’ in UK Savings Accounts, Experts Warn
A giant figure made up of two thousand fake banknotes has recently emerged in London’s Canary Wharf, serving as a symbol of dormant savings. Weighing over a tonne, the striking installation aims to draw attention to the whopping £1.3 trillion idly sitting in low-interest savings accounts across Britain, failing to meet even half the Bank of England’s benchmark rate. Dubbed the ‘sleeping giant,’ this eco-friendly statue was commissioned by savings experts at Flagstone. Through this art piece, Flagstone intends to alert Britons about the substantial amount of funds ‘languishing’ in poorly performing savings accounts.
Recent data provided by Flagstone indicates that a staggering 48 per cent of UK citizens with savings accounts are unaware of their interest rates, with many rarely or never bothering to check how their savings are faring. The sculpture is intended to underscore the fact that £1.3 trillion of British savings is currently parked in low-yield savings accounts. A spokesperson from Flagstone emphasised, “Most people aren’t financial experts. However, the first step towards maximizing interest earned is by showing an interest.” The research findings demonstrated that 15 per cent of adults spend minimal time selecting a savings account, often dedicating only a few minutes to this task. Furthermore, 30 per cent have remained loyal to their low-interest accounts for over a decade.
Despite 43 per cent acknowledging that their money could be working harder, many are uncertain about how to achieve better returns. Additionally, a third of respondents expressed concerns about financial risks. While recognising that individuals are busier than ever, the spokesperson highlighted the importance of taking small steps towards financial awareness. They mentioned, “Millions of savers could potentially double their current earnings. The initial step involves staying informed, understanding your interest rate, and exploring better alternatives.” The installation will be on display in Canary Wharf until the week’s end.
The unveiling of this thought-provoking sculpture in Canary Wharf serves as a poignant reminder of the vast sums of money left dormant in low-interest savings accounts throughout the UK. As Britons navigate the complexities of personal finance, discovering the optimal savings account is a crucial step towards achieving long-term financial goals. Banking experts urge individuals to educate themselves on interest rates, explore alternative options, and make informed decisions regarding their savings. By staying proactive and engaged in managing their finances, savers can potentially unlock increased earnings, enabling them to pursue their aspirations with greater financial security.
In a bid to raise awareness about the substantial amount of money lying dormant in underperforming savings accounts, the ‘sleeping giant’ installation in Canary Wharf serves as a striking visual representation of this financial phenomenon. With an estimated £1.3 trillion currently deposited in low-yield savings accounts across the nation, Britons are encouraged to take a more active role in monitoring and optimising their savings. By fostering a deeper understanding of interest rates, exploring alternative savings avenues, and staying informed about financial choices, individuals can potentially enhance their financial well-being and work towards a more prosperous future. The ‘sleeping giant’ in Canary Wharf stands as a wake-up call for savers to harness the full potential of their savings and secure a brighter financial future.