Savings platform Flagstone has unveiled this week a 8m long, 4m tall sleeping giant, made up of fully recyclable materials and 2,000 fake bank notes.
Located in Canary Wharf, the construction is designed to draw attention to the £1.3 trillion of UK savers' money that is earning them less than half of the Bank of England base rate, according to Flagstone's analysis of BoE data.
The finding comes after research among 2000 consumers which found that almost half (48%) of those with a savings account couldn’t tell you what the interest rate is on it. And 29 per cent have used the same low interest savings account for more than 11 years.
The research suggests that, in spite of huge advancements in personal finance thanks to embedded finance, AI-driven financial advice and automated investing and asset allocation, consumer behaviour towards how to manage their cash has yet to catch up.
Claire Jones, head of strategic partnerships at Flagstone comments: “People are busier than ever, so it’s understandable that their savings aren’t always front of mind. But a little work goes a long way; millions of savers could be earning double what they are today. The first step is staying informed - knowing your interest rate and knowing where to look for better options.”
The study also found 15 per cent of adults spent just ‘minutes’ assessing their options before setting up their last savings account. And 12 per cent who have cash in savings rarely or never check the progress of what’s in there.
Jones adds: “Most people aren’t money experts. So the best way to help millions more savers earn double what they make today lies with the experts: fintechs and banks. It’s down to us to mobilise savers - whether that’s through faster onboarding, easier account switching, or just better education about what the interest rate you’re on means in your pocket. It’s well documented that we’re not doing enough to get people saving for comfortable retirements. The industry needs to help people wake up to savings; when every pound pays its way, savers can earn more, do more, and ultimately feel more secure.”