With the ISA deadline just over a month away, new uSwitch research highlights the level of disillusionment felt by UK savers with less than one in three (32%) satisfied with the interest rate offered by their savings provider.
The report also reveals that Brits would prefer to put their cash ISA savings into a building society over any other savings provider.
Building societies gaining consumer trust
If all providers offered the same interest rate and service, four in ten (42%) cash ISA savers would still choose a building society. Traditional high street banks came in second (36%), followed by newer entrants or smaller players, such as Virgin and the Post Office (11%).
Fewer than one in ten consumers (7%) chose supermarket or retail brands, and overseas providers lagged well behind in bottom place (4%).
While not willing to invest with them, more than eight in ten consumers (82%) feel that new entrants to the savings market give the sector a boost – four in ten (39%) savers say they are more likely to use a ‘new player’ or supermarket brand than they were a year ago.
Low rates not deterring savers
Michael Ossei, uSwitch personal finance expert, commented: “Savers are having to make do with the lowest returns in years and they’re obviously not happy about it.
“Yet despite this, people are flocking to cash ISAs in their droves, with a 26% increase in the number of savers this year compared to last.
“However, while new entrants to the savings market are welcomed, savers still appear to be more confident placing their money with more established and trusted building societies.
“And it’s not difficult to see why – building societies currently offer some of the best cash ISA deals on the market and are consistently competitive.”