New research from Paragon Bank reveals the financial habits of successful savers who hold more than 12 months of outgoings in cash.

The study, which surveyed over 1,000 individuals with over a year’s worth of savings, identified key strategies employed by those who have built significant cash deposits. They included:

• Prioritising ISAs: A staggering 67% of these savers prioritise maximising their annual ISA allowance, taking advantage of tax-efficient savings options.
• Fixed-term savings power: Nearly two-thirds (65%) utilise fixed-term savings accounts.
• Rate savvy: Nearly half (49%) demonstrate a commitment to being "rate savvy" by regularly reviewing market rates and switching accounts to secure the best deals.

The survey also revealed several additional strategies employed by these successful savers:

• Promotional prowess: 40% leverage introductory rates and special offers to boost their returns.
• Discipline is key: Over a third (36%) prioritise avoiding unnecessary withdrawals, demonstrating financial discipline.
• Laddering for stability: 32% utilise "laddering" – a technique where savings are spread across fixed-rate accounts with staggered maturity dates – to ensure consistent access to a portion of their funds while maximising returns.

Paragon Bank also found that this group is more likely to make lump sum deposits (36%) compared to those with smaller savings of between three and six months’ outgoings (22%). Interestingly, they automate savings less frequently (15%) compared to those with lower balances (41%).

Choosing the Right Savings Partner

When selecting a savings provider, the research highlighted the top five factors for these successful savers, including rate, ease of online service, the financial strength of the provider, brand and a human call centre.

• Competitive interest rates (95%)
• Easy online service (70%)
• Financial strength of the provider (50%)
• Brand recognition (25%)
• Availability of a human call centre (20%)

“Building a significant savings pot often comes down to tried-and-tested methods,” said Derek Sprawling, Paragon Bank Managing Director of Savings. “Maximising your ISA allowance, utilising fixed-term rates, and being disciplined about reviewing and switching accounts are all proven strategies for success.”

Sprawling continued: “We’re also seeing a growing adoption of more sophisticated approaches like laddering. This allows savers to benefit from competitive fixed rates while maintaining some flexibility with easily accessible funds, ultimately smoothing out the impact of interest rate fluctuations.”

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank
07740090746

Notes to editors:

Paragon surveyed 1,042 savings customers with over 12 months of outgoings in cash savings between 2 and 5 July. 

Paragon Bank PLC is a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £15 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.