Interest rates paid by savings providers have improved during a period of higher interest rates.
At present, the average easy-access account pays interest of 3.12%, according to the financial information service Moneyfacts. Locking money away for a year carries an average return of 4.65%.
However, returns are expected to become less generous when the Bank of England reduces benchmark interest rates. A first drop could come in August.
Andrew Gall, head of savings at the Building Societies Association, which funded the research, said: “While we appreciate that some people simply won’t be in a position to save right now, these report findings show why everyone should be encouraged to save a little, if they can, when they can.”
The report said providers should make savings accounts simple, flexible and use incentives to get customers to save.
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