Are Instant Access Savings Rates About To Come Under Pressure?

Over the past seven years the volume of deposits held in instant access accounts has more than doubled to nearly £1 trillion1.

Bank of England data shows that the volume of deposits held in instant access savings accounts by individual and joint savers in the UK has increased by 62% since December 2012 to £763 billion1.


Value of UK household sector deposits by account type Flagstone

Bank of England Data - Databases LPQZ3TT and LPQZ3TZ

A similar trend has been seen in the UK business deposit market, with instant access accounts increasing significantly by volume and by market share versus notice and term deposit accounts over the last 7 years1.


value of UK corporate deposits by account type Flagstone

Bank of England Data - Databases LPQZ3TX and LPQZ3U5

Instant access account rates coming under pressure?

The dual headwinds of a weakened economic and political uncertainty have seen savers and finance directors continue to move their cash increasingly to instant access deposit accounts as they’ve sought to strike an optimal balance between accessibility and rate of return.

Bank of England data shows that instant access savings rates have provided that pragmatic safe haven, remaining resilient in recent times in the face of these persistent market challenges.


instant access savings rates for personal and joint accounts flagstone

Bank of England Data - Database IUMB6VK
Monthly sterling interest rate for instant access deposits from UK households (Excluding unconditional bonuses)

However, a dip in last month’s market average rate to 0.41% (from 0.45% in April), and recent moves by some banks to reduce their best rates could be a worrying indicator for savers that the returns available from instant access accounts could now be coming under pressure and the breadth of choice beginning to narrow.

Is there a solution?

As individual institutions weigh the prevailing post-election landscape and make decisions on their headline rates, the Flagstone cash deposit platform remains a powerful antidote to any such anxiety.

As Flagstone announces the addition of its 40th banking partner on the platform, clients now have access to a growing portfolio of nearly 600 deposit accounts.

For individual and joint clients these include an exclusive and best-in-market instant access rate of 1.50%2, more than three times the market average rate, and for business and charity finance directors a market-leading instant access rate of 1.40%2.

The breadth of providers and accounts available to clients using the Flagstone platform means that they can, on an ongoing basis, easily identify the best deposit rates and move their cash to these accounts without the requirement for any further paperwork - ensuring that their cash is always working as hard as possible for them and putting them in control.

To learn more about the Flagstone cash deposit platform, open an account.


1 £995 billion as at September 2019 – Bank of England Databases ‘LPQZ3TT’ and ‘LPQZ3TX’

2 Correct as at 17th December 2019.




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