Skip to main content
  • rainbow over text: 'thank you NHS'
  • Register
  • Help
  • Contact us
  • Log out of your HL account

How women can close the savings gap

Recent research on savings behaviour shows some stark differences between men and women, which could be costing women dearly.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

The good news is that women are just as likely as men to save, according to our recent survey. But dig a little deeper and a gender gap starts to appear.

Women are more likely to save with the same bank as they have their current account with (49% vs 40% for men). But over half of women don’t know what interest rate they’re getting on their cash, compared to 38% of their male counterparts.

Figures from the Bank of England show the average instant access rate on a high street savings account is a measly 0.43%, including unconditional bonuses. Comparing that to the rate of inflation, which is 1.5% as I write, means their money is at risk of losing its value in the long term. So the rate on offer really does matter.

Yet despite this, 68% of women don’t have plans to switch to another provider (58% for men).

When asked why, low rates on offer and the hassle factor of switching were the most popular reasons. But in reality, Active Savings could be the answer to both.

“I don’t switch because the rates on offer aren’t worth it”

If you’re prepared to look past your high street bank, the difference could surprise you.

Through Active Savings you can get access to a variety of easy access and fixed term savings products from a range of banking partners, all from one online account.

If you want to keep fast access to your money, you can currently get 1.20% (AER/Gross*) on an easy access product. On a savings balance of £10,000 that’s £77 more interest per year than the average high street account.

Fixed term savings could give you even more. They typically offer much better rates, as the table below shows, but you usually won’t have access to your money until the maturity date. You can currently get up to 1.90% (AER/Gross*) on a 1 year fix with Active Savings. On the same £10,000 savings pot that’s £147 more than the average high street account.

What difference could a new rate make on your savings? Find out with our handy calculator tool.

Interest earned

Based on a £10,000 savings pot.

“I don’t switch because it’s a hassle”

We understand, life’s busy. It can take a lot of time to manage your savings effectively, ensuring you’re getting great rates from providers you can trust. If you want to chase the best rates, you’d need to apply to multiple providers: having to complete new application forms and proving your identity each time.

With Active Savings you only ever have to complete one application. Once you’re set up you can select as many products from as many banking partners as you like, and you don’t have to fill in paperwork each time.

And it’s easy to keep track of the rate you’re getting. You can view all of your savings products alongside one another in your online account, no matter how many products you have from any number of banks.

We’re always adding to the service with new products and providers. You can sign up to receive savings alerts, so you’re one of the first to know about new rates, banks and products.

Will my savings be protected?

Moving your hard earned cash to a new bank can be daunting. But it doesn’t have to be.

Eligible deposits are protected up to £85,000 per banking licence through the Financial Services Compensation Scheme (FSCS). But any deposits over £85,000 are not likely to be covered. All of our partner banks are covered by the FSCS.

Find out more about the FSCS and how your money is held

This article isn’t personal advice. If you’re not sure if a savings product is right for you, please seek advice. Remember inflation reduces the future spending power of cash.

Close the gender savings gap with Active Savings

Active Savings could help you make more of your cash and close the gender gap. It might be the only savings account you ever need, and you can get started from as little as £1.

Get started with Active Savings

Figures quoted in this article are from a nationally representative survey of 2,000 people carried out by Opinium in October 2019.

Rates quoted are correct as of 16 December and can be withdrawn at any time.

*AER – (Annual Equivalent Rate) shows what the interest rate would be if interest was paid and compounded once each year. It helps you compare the interest rates on different savings products.

Gross – means the interest rate without any tax deducted. Interest is paid gross. You are responsible for paying any tax due on interest that exceeds your Personal Savings Allowance to HM Revenue & Customs.

Expected profit rate – Islamic banks offer an expected profit rate, rather than interest on their savings products, in order to comply with Sharia banking principles.

This website is issued by Hargreaves Lansdown Asset Management Limited (company number 1896481), which is authorised and regulated by the Financial Conduct Authority with firm reference 115248. The Active Savings service is provided by Hargreaves Lansdown Savings Limited (company number 8355960). Hargreaves Lansdown Savings Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 with firm reference 751996 for the provision of payment services. Hargreaves Lansdown Asset Management Limited and Hargreaves Lansdown Savings Limited are subsidiaries of Hargreaves Lansdown plc (company number 2122142).

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Editor's choice – our weekly email

Sign up to receive the week's top investment stories from Hargreaves Lansdown. Including:

  • Latest comment on economies and markets
  • Expert investment research
  • Financial planning tips
Sign up

Related articles

Category: Investing and saving

5 tips to navigate market storms

We give you our top five investment tips to help you steer through this market storm.

Nadeem Umar

09 Apr 2020 5 min read

Category: Investing and saving

Invest like the best – how Peter Lynch beat the city

Peter Lynch was a legendary fund manager. We look at his key principles, and how you can apply them to picking investments.

Nadeem Umar

26 May 2020 4 min read

Category: Essentials

How a balanced portfolio can help you weather the storm

We take a look at the importance of rebalancing and how it can help you steer through the market storms.

Nadeem Umar

26 May 2020 min read

Category: Investing and saving

How to save for the unexpected

We look at why everyone should have an emergency pot of cash, and how to get a £25 bonus towards starting yours.

Ryan Kenny

22 May 2020 4 min read