Savings platform Flagstone has prominently introduced a striking installation in Canary Wharf, featuring a colossal structure measuring 8 meters in length and 4 meters in height. This impressive display, constructed entirely from recyclable materials and adorned with 2,000 replica banknotes, aims to capture the attention of the public regarding a pressing issue in the financial landscape.
According to Flagstone’s analysis of Bank of England data, £1.3 trillion of UK savers’ funds are currently yielding returns below half of the prevailing base rate. This statistic underscores a concerning trend revealed by research conducted among 2,000 consumers, indicating that nearly 48% of individuals with a savings account are unaware of the interest rate applicable to their balances. Additionally, 29% have maintained the same low-interest account for over 11 years.
Despite notable advancements in personal finance—through innovations such as embedded finance, AI-driven financial advisory services, and automated investment tools—consumer behavior regarding savings management appears to be lagging.
Claire Jones, Head of Strategic Partnerships at Flagstone, remarked, “In today’s fast-paced world, it’s understandable that individuals may overlook their savings. However, a little proactive effort can lead to significant rewards; millions of savers could potentially double their earnings. The crucial first step is staying informed—understanding your interest rate and exploring better options.”
The research further revealed that 15% of adults invest only a few minutes evaluating their choices before establishing their last savings account. Alarmingly, 12% of those with savings seldom or never check on their account’s progress.
Jones emphasized, “The majority of people do not possess extensive financial expertise. Consequently, the responsibility to assist millions of savers in optimizing their earnings rests upon us—fintechs and banks. We must facilitate this process through faster onboarding, streamlined account switching, and improved education on the significance of interest rates in relation to individual finances. It is well understood that we need to prioritize encouraging individuals to save for a stable retirement. The industry must motivate savers to take charge; when every pound contributes effectively, savers can earn more, achieve greater financial goals, and ultimately enjoy enhanced security.”