More than £119 billion of savings are set to mature before the end of the year, potentially putting millions of savers at risk of significantly lower returns, warns Skipton Building Society.
New analysis from the building society shows that £119.6 billion held in fixed-rate savings accounts is due to mature between September and the end of the year, including £56 billion in non-ISA accounts and £63.6 billion in cash ISAs.
Many of these accounts were opened during a higher-rate environment and if left unattended, could be automatically transferred to lower-paying variable-rate products, reducing the returns savers receive on their money.
However, research commissioned by Skipton Building Society suggests many savers may be unprepared to act. Nearly four in 10 (39%) say they rarely or never move their savings, while 31% admit experiencing “money-moving paralysis.” More than one in three (34%) do not understand the term “account maturity.”
According to Skipton Building Society, the cost of inaction could be significant. Savers who fail to review their options could see the return on their savings fall by almost half.
Alex Sitaras, head of savings and partnerships at Skipton Building Society, said: “Too often, people focus on the rate they opened an account with and forget to review what happens when that deal ends. The difference between a competitive rate and a lower variable rate can have a meaningful impact on returns over time.
“The good news is that there is no one-size-fits-all answer. Some people may decide a new fixed-rate savings account is right for them, while others may prioritise flexibility, tax efficiency or longer-term financial goals.”
Sitaras said with ISA rules set to change, people need to take stock of their options rather than making decisions on autopilot.
“For some savers, that may mean keeping their money in cash, while for others it could be worth exploring alternatives such as investments or pensions, depending on their circumstances and attitude to risk.
“That’s why we encourage savers to start the conversation early and seek guidance if they’re unsure. A short conversation today could make a meaningful difference to how hard their money works in the years ahead.”
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