Savers are choosing shorter-term savings as uncertainty persists

• thisbank analysis of more than 22,000 account openings finds a clear shift towards shorter-term fixed savings.
• Short-term savings now account for 36.6% of account openings, up from 31.8% in FY23/24, a 4.8 percentage-point increase.
• The shift is towards shorter fixed terms, not simply easy access, one-year fixed accounts increased from 20.7% of openings in FY23/24 to 23.5% in FY25/26, while three- and five-year fixes declined.
• Early FY26/27 data points to the trend continuing, with short-term accounts representing 86.7% of openings between April and August 2026, although this is a partial-year figure and should be treated with caution.

UK savers are increasingly choosing shorter-term savings products as they place greater value on flexibility and keeping their options open amid continued economic and wider uncertainty, new analysis from thisbank, the UK bank focused on simplifying everyday banking, suggests.
Analysis of 22,371 account openings between FY23/24 and FY26/27 shows that the proportion of customers opening short-term savings accounts rose from 31.8% in FY23/24 to 37.2% in FY24/25 and 36.6% in FY25/26.< The data indicates that this is primarily a shift within fixed-term savings, rather than a wholesale move towards easy-access accounts. One-year fixed accounts represented 20.7% of openings in FY23/24, rising to 23.5% in FY25/26. Over the same period, three-year fixed accounts fell from 31.0% to 13.8%, while five-year fixed accounts declined from 27.0% to 17.9%. The shift suggests that savers are increasingly weighing up the benefits of securing their money for longer against the value of retaining liquidity and flexibility. With households continuing to navigate cost-of-living pressures, wider economic and geopolitical uncertainty and changing financial priorities, having access to savings can be an important consideration when deciding how long to commit money for.   Chris Waring, CEO of thisbank, said, “When the outlook feels uncertain, people naturally want to retain flexibility over their money. Whether it’s the cost of living, wider economic and geopolitical uncertainty or simply not knowing what the next year might bring, savers are having to think carefully about how long they are comfortable committing their money for.“What we’re seeing in our data is a reflection of that wider behaviour. People still want their savings to work hard, but they also want to know they have options if their circumstances change.”
 
David Searle, Chief Product Officer at thisbank, said, “Every account opening is a decision made carefully by a consumer. Multiply that by over 20,000 consumers and you understand their true motivations and drivers.

When we reviewed our account opening data, the dramatic shift to shorter fixed terms was immediately obvious. So we built Triple Access Savings to address this need.

This is the power of insights in action – the change to respond to customer needs and meet consumers where they are.”

The latest figures provide an early indication that the trend may be continuing. Short-term accounts represented 86.7% of openings between April and August 2026. However, this figure covers only the first five months of the financial year and includes an unusually large spike in one-year and Triple Access account openings during June.

As a result, the FY26/27 figure should be treated as an early signal rather than a full-year trend. The analysis also measures account openings rather than balances, providing an indication of product choice rather than the total value customers are holding in each type of account.

The findings come against a backdrop of changing savings rates, with consumers weighing up the benefits of locking in competitive returns against the flexibility of shorter-term products.
 
Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said: “Moneyfacts’ latest data shows the average one-year fixed-rate bond has risen from 3.85% at the start of the year to over 4.5% today, compared with around 4.6% for longer-term fixed bonds. This highlights the balancing act savers face between securing competitive returns and retaining flexibility.”

The findings come as the outlook for interest rates remains uncertain. The Bank of England maintained Bank Rate at 3.75% in September 2026. Its latest Market Participants Survey, based on responses from 92 market participants, showed a median expectation of 3.75% for Bank Rate one year ahead, with responses ranging from 3.25% to 4.00%.

The Bank of England has also noted that the market curve had moved higher and that perceived risks of near-term increases in Bank Rate had risen, highlighting the uncertainty around the path of rates over the coming year.