16 July, 2025, LONDON –

The average UK savings account has lost £2,989 in real terms between June 2020 and June 2025, according to research from personal finance site Finder.

A Finder survey found that the average UK adult has just over £16,000 in savings. If savings rates had risen in line with inflation over the last 5 years, then this amount would now be worth £20,286.

However, due to the high inflation we’ve seen in recent years – and the fact savings rates have not kept pace with it – this figure is actually almost £3,000 lower with the average savings rate. If someone had placed £16,067 in a typical variable cash ISA in June 2020, it would now be worth just £17,296.

Over the past 5 years, inflation has been above the average variable cash ISA rate for 51 out of 60 months, or 85% of the time.

Commenting on the findings and latest inflation figures, Kate Steere, personal finance expert at Finder, said:

“Inflationary pressures continue in 2025, with inflation struggling to get anywhere close to the Bank of England’s 2% target. So-called ‘awful April’ saw the sharpest increase in inflation since October 2022, and figures released today show this has not yet eased. In fact, analysts are largely predicting inflation to stay above 3% for the rest of the year.

“At the same time, our research found that 9 popular banks, including the “big four”, have either slashed or scheduled a drop in their rates since the last base rate cut. These inflation figures may stall a further cut in August – but the Bank of England governor has hinted about a “downward path”. If a cut does go ahead, this will only prompt banks to bring savings rates down further in the latter half of the year.

“That’s why it’s more important than ever for savers not to settle. Loyalty doesn’t pay, so make sure you’re seeking out the best inflation-beating rates on the market. Many savings accounts offer a boosted rate for the first 3-12 months so take advantage of that, or you can lock your money away with the top fixed-rate ISA.”

Methodology:

The monthly savings rates are taken from Bank of England data on the quoted household interest rates on variable cash ISAs. The inflation rate used is the Consumer Price Index (CPI) as reported by the ONS. In both calculations, interest is assumed to be compounded monthly.

To find the average UK savings, Finder commissioned Censuswide on 10/03/2023 to carry out a nationally representative survey of adults aged 18+. A total of 2,000 people were questioned throughout Great Britain, with representative quotas for gender, age and region.