UK Savvy Savers Brace for Interest Rate Hikes

33 per cent of UK savers expect interest rates to increase
60 per cent of those who anticipate a rate increase are acting on their savings
28 per cent of those who expect an increase are saving more money nows

LONDON, August 1, 2018 – New research shows that 33 per cent of UK savers expect interest rates to increase within the next three months, with 60 per cent acting in anticipation of rate rises. The research from Ford Money, the UK savings bank from Ford Motor Company’s financial services business, Ford Credit, also shows that 49 per cent could be missing out on the benefits of diversifying their savings accounts.

The study of 1,635 UK savers highlights that among those who anticipate a rate increase:

28 per cent are saving more money
16 per cent are shopping around for a better savings account
13 per cent are moving more of their savings to an instant/easy access account

“Savvy savers today are taking an active stance to reap the benefits of interest rate changes. By moving cash into an easy access account, you have the added flexibility of switching to a more lucrative product if interest rates do increase,” said Suzanne Lewsley, Ford Money’s chief deposits officer.

The research also reveals that among those who have diversified savings portfolios:

74 per cent say it helps make the most of their money
68 per cent say it better protects their money
55 per cent say it helps them track progress toward savings goals

“Those who spread their cash across multiple types of savings accounts are likely to benefit over the long term. Having a combination of easy access and fixed-rate products, whether it’s for your ISAs or your taxable savings accounts, means you can access some money, while benefitting from the higher rates typically offered by fixed-rate products,” Lewsley said.

“Some banks now also offer Portfolio ISAs, allowing you to spread your annual ISA allowance across multiple ISA products. It’s worthwhile to see if your bank has this feature before opening an account.”

Since its launch in April 2017, Ford Money has been shortlisted for a number of consumer money awards, underlining its commitment to delivering a fair and consistent service for savers.

Most recently, Ford Money was ‘Highly Commended’ in the ‘Best Savings Provider for Large Deposits’ category at the 2018 Moneywise Customer Service Awards. Ford Money also was named Best New Savings Provider at the Moneynet Personal Finance Awards 2018.

Ford Money services are available online at www.fordmoney.co.uk and include a range of savings products and ISAs. Deposits of up to £85,000 are protected by the UK government’s Financial Services Compensation Scheme (FSCS).

Notes to editors

All figures, unless otherwise stated, are from a survey by Opinium, commissioned by Ford Money. Total sample size was 1,635 UK savers. Fieldwork was undertaken between 20 - 23 July 2018. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 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 new savings provider in the UK. FCE is a registered bank in the UK, authorised 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 authorised 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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UK Savvy Savers Brace for Interest Rate Hikes

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