Fears around Covid-19 have seen UK households opting for cash savings on a vast scale, as opposed to investing in 2020. Research has shown this to be a missed opportunity, as in most cases the amount saved has been far above the amount needed to cover emergency costs. Additionally, with interest rates at a record low and with no sign of increasing in the near future, this money offers savers very little reward.
The research has found that UK households have put away £77bn in cash over the first six months of the year, taking the total cash pile to a record £1.5trn - equal to the UK's collective residential mortgage debt. However, the group said that nearly £1.2trn of this cash was not actually needed to meet household contingencies, meaning that large amounts of cash across Britain are "sitting unproductively earning minimal interest".