Introduction

Growth in UK retail deposits gathered momentum during the credit crunch as consumers looked to boost their savings levels. Currently the level of competition in the market has seen some providers offering a product with a much greater return than would be expected from the historically low base rate. Going forward regulation is likely to have an important role in the market.

Features and benefits

• Analyses the level of competition in the market using measures such as average rates and advertising expenditure.
• Provides market share data for the different competitors.
• Provides forecasts for the overall level of retail deposits in the market over the next four years.
• Considers the impact of new entrants into the market.

Highlights

Around two-thirds of the UK population has a savings account, with the vast majority holding an instant access account. This illustrates that consumers continue to place importance on the ease of access to their funds in these uncertain economic times.

Over time the large players in the retail deposits market have increased their share. In 2005, the top 10 providers had a 46.1% share of the market but by 2009 the top 10 had more than three-quarters of the market between them.

Some large savings account providers offer a highly competitive savings rate for those who have an existing current account relationship with the provider. This is tying the customer in by giving them less of an incentive to switch their current account and so the bank can build on this relationship with their customer.

Your key questions answered

• Gain insight on consumer attitudes to saving through Datamonitor's proprietary Financial Services and Consumer Insights survey.
• Use Datamonitor's market share data to benchmark your performance against that of your competitors.
• Understand how the market is expected to perform over the next few years to help you plan your strategy accordingly.