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UK a nation of adult piggybank savers

28/04/2016

  • £1.3 billion is languishing at home that could be working harder for Brits
  • A quarter of parents say their children have more money in savings accounts than they do.

Piggybank savings habits are dying hard, with 7.6 million adults saying they still stash cash in their favourite porcelain friend according to new research from Virgin Money.

The research shows that while keeping money ‘on the side’ is the most popular place for keeping cash at home (16%), piggybanks’ main rivalry comes in the form of glass jars (12%), large bottles (7%) and even bags (7%). In fact, Virgin Money estimates there is £1.3 billion languishing at home that could be working harder for Brits.

As adults continue to hoard their coins and notes at home, their children are putting them to shame. Over half the parents surveyed (53%) said they actively encouraged their children to save and nearly a quarter of parents questioned (23%) said their children have more money deposited in ISAs and savings accounts than they do.

Zack Hocking, Savings Director at Virgin Money, said: “Piggybanks are a great starting point for children learning the basics of saving money, but there is a clear opportunity for adults to gather their stockpiles together and make their money work harder for them. Whether it is under the mattress, in a bottle, or in a sock drawer, that money could be contributing towards their savings goals. 88% of people said they do save, and this year hope to put money aside for holidays, a rainy day or home renovations.”

The research found men have more money at home than women (on average £53.80 v £31.30). Piggybank savers are more likely to be female than male (25% v 15%), under the age of 34, and live in London or the North East.

The main reasons people say they keep money at home are because they like to have money where they can see it (29%), because they use it for everyday items (16%) and because they like to be able to access it at all times (14%).

The research finds that beyond the cash at home, people have more than £7,000 on average in current accounts and poorly performing savings accounts and ISAs, which they can readily access. Just 27% are happy with the interest rate they are earning on that money. A further 29% know the rate and aren’t happy with it, 28% don’t know the rate and 17% say their money is earning them no interest at all.

People say they would need to earn an average of £120 in interest a year to be persuaded to move their money. The Virgin Money Defined Access Cash ISA is offering a competitive rate of 1.31%. Fully funded it could add an additional £200 to the coffers in a single year, boosting the nation’s savings pot.

ENDS

Media Contacts
Virgin Money Press Office
0191 279 4676
press.office@virginmoney.com

NOTES TO EDITORS

About the research

Opinium surveyed 2,005 adults between 11 and 14 March 2016. The sample has been weighted to reflect a nationally representative audience.

About Virgin Money

  • Virgin Money offers savings, mortgages, credit cards, current accounts, currency services, pensions, investments and protection products to customers across the UK
  • Virgin Money’s business ambition is to make “everyone better off” – this philosophy underpins our approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders
  • Virgin Money is the official sponsor of the London Marathon, the biggest annual one-day fundraising event in the world. Virgin Money has helped London Marathon runners raise over £315 million, including funds raised through Virgin Money Giving, the not-for-profit online fundraising service, since 2010.
Virgin Money plc - Registered in England and Wales (Company No. 6952311). Registered Office - Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.