The savings market spiked to a record £986bn in October 2021, with the average savings balance now standing at £12,431, CACI data analysed by Paragon Bank has indicated.

According to the latest figures recorded on CACI’s database, which captures savings data from more than 30 providers, had revealed a small dip in the value of the savings market in September.

However, October saw the market return to its pattern of growth, with a £7.4bn month-on-month increase in value, and a 3.7% rise year-on-year.

This October increase comes after savings balances had remained static between July and September at around £978bn, which Paragon suggested had reflected the impact of lockdown lifting on households’ saving and spending habits.

Total savings recorded by CACI has grown by 9.1% since the pandemic began, climbing from £903bn in March 2020, to this latest figure of £986bn.

Paragon savings director, Derek Sprawling, commented: “CACI’s member banks saw the savings market’s growth remain flat throughout summer and early autumn.

“Although the easy access category continued to grow at a steady pace throughout this period, the reduction of other categories such as fixed rate products balanced that out to create a static market.”

Paragon’s analysis suggested the most notable spike in value was across the easy access non-ISA product category, which increased by £10bn between September and October alone, outpacing the total savings category growth by £2bn.

This trend over the course of the pandemic has also translated to higher average balances – with the average non-ISA easy access balance growing from £10,246 in March 2020, to £12,106 in October 2021.

“The dominant trend that we are noting in the easy access space is that seven out of 10 savers continue to receive a really low return on their money,” Sprawling said.

“This is despite rates picking up across the board and best-buy deals currently offering people the opportunity to earn at least six times more interest than they currently are in a low-paying account. Savers in low paying accounts are missing out on considerable interest so it’s important for people to look for the best deal.”

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