Abstract
Queues of worried savers looking to withdraw their money from troubled bank Northern Rock dominated media headlines in September 2007. The crisis placed the savings market in the spotlight and has led to a renewed emphasis on the term ‘safe haven' . Mintel' s consumer research reveals that a quarter of adults have altered their attitudes towards saving following the issues at Northern Rock. As more people look for a ‘safe haven' for their savings accounts, some providers appear to be in a strong position to benefit from the fall-out from the issues at Northern Rock.
Recent economic uncertainties have also heightened the importance of savings accounts, underlined by an increased consumer appetite for saving. However, overall ownership of safe haven savings products is relatively high compared with other financial products, limiting the scope for the market to grow significantly in terms of new savers. Therefore, providers are increasingly focusing their attentions on attracting savers from other institutions through rate-driven marketing activity. Meanwhile, retention strategies designed to maintain existing customer bases and where possible increase the funds held and number of products held per customer are also growing in importance.
This report provides an overview of the market for safe haven savings products, encompassing deposit and savings accounts including cash ISAs and products provided by National Savings & Investments. It considers factors impacting the market including the current economic climate, government legislation and changes in the distribution of retail banking products. Market size and market share estimates are provided based on a combination of industry data and Mintel' s consumer research.
Mintel has also commissioned research exploring the key issues facing the market including the Northern Rock crisis, switching activity and more general attitudes and behaviours towards savings accounts.
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