More than 33% say Savings/CDs still the best place to keep their money in today’s economy;
Majority of American savers (70%) won’t shift any money to stocks or increase current stock portfolio, even if stock market improves
WILMINGTON, Del., Nov., 2012 /PRNewswire/ — Barclays Bank announced that it has surpassed $1 billion in deposits for its new, high-yield online savings account and certificate of deposit (CD) in less than six months. Launched in May, the bank achieved this impressive milestone more than two months ahead of schedule. In October, Money Magazine named Barclays a “2012 Best Bank” for savings accounts, thanks to its industry-leading rates and for having “no-fuss [products], with neither a maintenance fee nor a minimum.”
“Barclays is extremely excited and proud to have reached this major milestone for our online savings accounts and CDs in such a short time, and we thank our customers for their continued patronage,” said Steve Carp, managing director of deposits for Barclays US. “We’re even more proud to have been named a 2012 Best Bank by Money Magazine, which lets our customers know they’ve made a great choice by banking with Barclays.”
The Bank credits its rapid growth to its market-leading interest rates (1% APY), easier access to and control over funds, and customer-friendly service. In addition, results from a September 2012 online survey commissioned by Barclays and conducted by Harris Interactive of more than 2,300 U.S. adults indicate that Americans have a strong affinity for saving money regardless of the challenging economic conditions. The survey revealed:
- 78% of those who save said that they are saving more (29%) or the same amount (49%) as last year, which speaks to consumer sentiment toward savings and the general health of the economy. However, 22% said they are saving less than last year.
- 37% of U.S. adults say that an increase in saving accounts interest rates would impact the amount of money they put into savings.
- Overwhelmingly, 34% of U.S. adults say that savings/CDs are still the safest place to keep money given the current state of the economy. This beat out other savings or investment vehicles including: IRA/401k (13%); keeping cash “on hand” (12%); precious metals (10%); real estate (5%); stocks/bonds (4%); off-shore accounts (2%); or other preferences (5%).
- Another 16% feel there is no safe place to keep money in today’s economic climate.
- With regards to the markets, 70% of Americans who ever put money into savings said that even if the market improves they will not re-allocate any money from savings to stocks or bonds (33%) or increase their current allocations (37%).
- 30% indicated they would increase their stock portfolios; 23% said they would reallocate a small portion of their savings deposits to stocks, 6% said they would reallocate a large portion of their savings, and only 1% said they would stop contributing to savings completely in favor of stocks and bonds.
- Other interesting findings revealed that 25% of Americans are still not comfortable banking online, despite its convenience, better control, security, on-demand access and new technologies (e.g., smartphones/tablets) making it easier. In addition, 16% of U.S. adults said they have never put money into savings.
“Whether it’s because of today’s challenging economic conditions or in spite of them, the survey reveals that mainstream Americans want to save more — but that they also prefer the flexibility and stability of a high-interest rate savings account versus other complex or risky investment options,” said Mr. Carp. “Because we know there are plenty of other savings and investment options available, Barclays is committed to helping customers achieve their savings goals while making their financial lives simpler.”
In addition to market-leading rates, Barclays’ high-yield online savings features an intuitive online experience that provides consumers an easy way to open an account, deposit funds or checks remotely via ACH bank transfer, PC scanner or smartphone, view account balances and link to deposit accounts at other financial institutions in the U.S. There is no minimum deposit to open a savings account and there are no minimum monthly maintenance fees. CD terms range from three to 60 months.
Barclays’ online savings accounts and CDs are backed by more than 300 years of history and global banking expertise and trusted by more than 48 million customers and clients globally. The Barclays US savings accounts are fully FDIC insured and protected by the highest levels of account security. For more information, or to open an account, please visit: www.barclaysus.com/deposits.
This survey was conducted online within the U.S. by Harris Interactive via its QuickQuery omnibus product on behalf of Barclays PLC from September 18 through 20, 2012 among 2,361 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
About Barclays PLC
Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs 140,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.
For further information about Barclays, please visit our website www.barclays.com.
SOURCE Barclays US