A quarter (27%) of savers are currently putting money away to get ahead of rising bills, according to recent research carried out by Atom bank and Walnut Unlimited.

The looming energy cap increase in October seems to be at the forefront of our minds, with many of us worrying about making ends meet in the coming winter months. This is perhaps unsurprising given 20.3 million (39%) Brits don’t feel confident managing their money, and 11.5 million have less than £100 in savings according to the Money Advice Service.² As the current cost of living crisis bites, Atom’s report also found that a fifth of savers (20%) haven’t been able to save as much as they usually would in the last six months, while nearly the same number (16%) haven’t been able to save at all in the current climate.

A whole host of new providers in the market, like Atom, have made the process of saving simpler, faster and better value than the incumbent banks, and Aileen Robertson, Head of Savings at Atom bank, explains why people should reconsider their loyalty to their current provider.

What does saving look like in a cost of living crisis?

The interest rate set by the Bank of England has been increasing significantly over the last few months to combat rising inflation, which should mean that savings rates follow – but the bigger high street banks aren’t necessarily passing these increases onto customers.

Now is the time to make our bank accounts work harder for us, which means delving into the terms of our existing savings accounts and thinking hard about how we can get bigger returns on the (perhaps limited) funds in there.

Aileen Robertson comments:

“Too often we’re guilty of being creatures of habit and staying loyal to our existing banks, despite not getting the best value for our money. This usually stems from a lack of understanding and knowledge about what else is out there. At a time like this – when there is so much financial uncertainty, people need to take action and get the most out of their money. You may have had the same savings account with your bank for years, but a 0.2% interest rate isn’t much of a reward for your loyalty.

“It’s key to have a savings account that works in your favour at the moment. Realistically, you should aim to utilise this more than your current account, as this will likely be paying you next to nothing on your savings. I’d think about keeping the majority of your money in an easy-access savings account – which allows you access to your cash but earns you more interest on your hard-earned cash at the same time.

“I’d really encourage people to shop around for the best deals as rates increase, and be sure to check the terms of the account to find out important things like if interest gets added monthly or annually or if there is a minimum deposit amount. It’s also important to check how often you can withdraw – ideally, you should opt for an account that allows you unlimited withdrawals so you have that safety buffer if you need your money.”