- Record £125bn added to saving reserves during lockdown1, average £5,000 per household
- Interest rates remain at historically low levels2
- Bank of England estimates £1.6tr in household cash deposits - £225bn in non-interest bearing deposits3
The Bank of England’s Monetary Policy Report1 in February 2021 showed that “households have accumulated an excess stock of savings of £125 billion” throughout the pandemic, equating to an average of £5,000 per household. The Bank of England expects this figure “to rise substantially over the first half of 2021”, despite interest rates remaining at historically low levels2.
Against this backdrop, leading savings and retirement firm Aviva has today launched a new cash savings platform, Aviva Save4. This new online marketplace gives customers a choice of different savings accounts from a variety of banks. More banks and savings accounts, including notice and easy access accounts, will be added to Aviva Save throughout 2021, increasing the range of ongoing choice for its customers.
Aimed at supporting savers who want a simple and convenient way to manage their savings in one place, Aviva Save will enable customers to open and switch accounts, from a range of banks, without having to re-register multiple times with different providers. The cash savings products can also be used to complement Aviva’s longer term savings vehicles, such as ISAs and pensions.
Roger Marsden, Managing Director, Retail Savings and Retirement said: “Although we recognise that not everyone will have the luxury of extra cash at this time, those who do will want their money to work as hard as possible.
"It is more important than ever that customers take a broader view of their finances and their savings, and shop around for the best option to meet their needs."
“Whilst many savers may be frustrated with the low returns they’ve received on their savings during lockdown, the effort involved in moving their money around is often a barrier to them and stops them doing anything at all. This can lead to a general apathy amongst savers to switch, despite there often being more competitive rates available. Aviva Save will address this by offering customers a range of accounts and rates over time, so they can manage their finances and switch between accounts easily.
“Our own research showed that more than half (57%)5 of people took action in relation to their savings during the last lockdown and, during these uncertain times, they will want to make sure their finances and savings can meet their longer term goals, as well as their more immediate needs. Lockdown has meant lifestyle and spending habits have changed, and they will continue to change throughout 2021. It is more important than ever that customers take a broader view of their finances and their savings, and shop around for the best option to meet their needs.”
Aviva has partnered with Raisin UK, pioneers in open banking and the leading pan-European one-stop-shop for online savings. Initially it will offer its customers a selection of fixed-term savings accounts with a number of banks.
"The launch of Aviva Save with Raisin represents a significant step in the future of deposits and the fintech industry."
Katharina Lueth, VP of Europe for Raisin and Chairwoman of Raisin UK, commented: “The launch of Aviva Save with Raisin represents a significant step in the future of deposits and the fintech industry. In December, flows into deposit accounts within the UK savings market rose to £20.9bn, an increase from an already high £18.4bn in November. As a result, the Bank of England estimates that there is almost £1.6tr in household cash deposits - with a worrying £225bn sitting in non-interest bearing deposits3. Partnerships like this demonstrate the increased importance of finding new ways to provide customers easy ways to access higher interest rates and optimise their savings.”
- Research of 2,003 UK consumers conducted on behalf of Aviva by Censuswide, November 2020. Censuswide is a member of ESOMAR- a global association and voice of the data, research and insights industry.
Notes to editors:
- For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/
- We exist to be with people when it really matters, throughout their lives – to help them make the most of life. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’.
- In 2020, we paid £30.6 billion in claims and benefits to our customers.
- Aviva is invested in our people, our customers, our communities and our planet. In 2021, we announced our plan to become a Net Zero carbon emissions company by 2040, the most demanding target of any major insurance company in the world. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. Aviva has been leading this agenda for decades: Aviva was the first international insurer to go operationally carbon neutral in 2006 and we are champions of renewable energy and energy storage at our offices, allowing us to achieve our 2030 carbon reduction target (70% reduction on 2010 levels) 10 years early. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition at www.aviva.com/sustainability.
- Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/social-purpose
- We are focused on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. Our international businesses in Europe and Asia will be managed for long-term shareholder value. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience.
- Total group assets under management at Aviva group are £535 billion and our Solvency II capital surplus is £13.0 billion (FY20). Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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