Vegan Choices Outpace Savings Provider Changes

According to the research, switching is far from a regular occurrence, with a third (31%) stating they have not switched in the last 10 years and over half (51%) having done so no more than twice in their lifetime.

It found almost a fifth (19%) of those who never or rarely change savings providers stated it would be simply ‘too much hassle’ or ‘take too long’. Meanwhile, a similar number (18%) had not considered whether they could get a better deal elsewhere.

“When it comes to our money, we’re famous for sticking, not switching. As our research has shown, people rarely change savings accounts, because it’s perceived as a hassle, time-consuming or difficult. The only thing that pushes us to do so is often an incentive for reward – with over half (55%) stating higher interest rates would attract them to a provider,” said Suzanne Lewsley, Ford Money’s chief deposits officer.

“Many challenger savings banks also offer other benefits on top of higher rates. It’s therefore important to research and take your time to shop around to make sure you understand the different products on offer and make the right choice for you. For example, at Ford Money, we offer ‘Our Best Rate Guarantee’, which means existing customers always receive the same rate as new customers on like-for-like variable-rate products.”

New Year, New Savings Account

Ford Money’s research further revealed that while switching is rare, the most popular time to change savings provider is as a new year dawns, with almost one in five (17%) saying they would be more likely to switch savings accounts in January than any other month of the year.

However, despite proving the most popular time of year to consider changing providers, UK adults admitted they are more likely to make dietary changes, such as trying ‘Veganuary’ (16%), than they are to switch savings accounts (14%) this coming January. 

While not everyone will be switching this January, when looking at the longer term it remains on the radar of many UK savers. According to the figures, of those that are open to switching, almost a third (29%) are likely to consider doing so in the next three years.

 “It’s clear from our research that switching savings providers can often fall to the bottom of the priority list, with people more likely to change their car (47%) or insurance provider (57%) than switch savings accounts (29%) in the next three years,” Lewsley said.

“And as a result, many are missing out on the interest rates and products that will allow them to make the most out of their money in 2020. There are huge benefits to switching things up and the New Year is a great time to take stock and make changes to both your lifestyle and finances. By making a money-motivated resolution to switch providers during the festive season, you can start the New Year on the right financial foot.”

Here are some top tips from Suzanne to help you make the switch this January:

1.     Make the most of the seasonal down time – It’s easy for switching savings account to fall to the bottom of your to-do list (especially when there are seasonal distractions), but if you put it off you could be missing out on earning higher interest, especially if you’ve been with the same provider for a long time. It doesn’t take as long as you think, so once the Christmas frenzy has subsided, use some of that down time before New Year’s Eve to commit and make the change. Once you’re done, you can start the New Year ready to achieve your savings goals and resolutions.

2.     Narrow your options – It’s important to choose the savings account that’s right for you, but they come in all shapes and sizes and the choice can be overwhelming. Try narrowing the selection by thinking about what you need: Are you going to want to access your savings throughout the year, or are you happy to leave them locked away untouched? How often will you be making deposits? Once you know what you’re looking for, it will be easier to filter through and find an account that works for you.

3.     Shop around for the best deals – It may feel easier to open a savings account with your current account provider or the first one that appears on an internet search, but often you won’t get the best rate or service. For the best rates on all kinds of savings accounts, it is worth checking out the best buy tables, but also look further afield too – doing some online research will be well worth your while, as you can uncover benefits that some providers offer over others. And if you’re taking some time to think before opening the account, it’s worth checking back regularly, as the rates and products on offer can change.

Notes to editors

All figures, unless otherwise stated, are from a survey by Opinium, commissioned by Ford Money. Total sample size was 2,005 UK adults. Fieldwork was undertaken from 29 November - 2 December 2019. The survey was carried out online. The figures have been weighted and are representative of all UK adults (ages 18+).

About Ford Motor Credit Company
Ford Motor Credit Company is a leading automotive financial services company. It provides dealer and customer financing to support the sale of Ford Motor Company products around the world, including through Lincoln Automotive Financial Services in the United States, Canada and China. FCE Bank is a subsidiary of Ford Credit, which is a subsidiary of Ford. For more information, visit www.fordcredit.com or www.lincolnafs.com.

About Ford Money

As part of Ford Credit Europe (licensed as FCE Bank plc), Ford Money is a savings provider in the UK. FCE is a registered bank in the UK, authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA to accept deposits. Deposits of up to £85,000 are protected by the UK government’s Financial Services Compensation Scheme (FSCS). For more information, visit www.fordmoney.co.uk.

Ford Money is a trading style of FCE Bank plc., which is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Number 204469. Registered in England and Wales under registration number 772784.

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