In 2022, the Building Societies Association (BSA) and its members launched UK Savings Week to promote better savings habits across the country. With around 14 million people in the UK holding less than £100 in savings, the initiative was designed to raise awareness, improve financial literacy, and encourage long-term resilience. For building societies, this presents a unique opportunity to reaffirm their purpose-driven model and deepen their role in supporting members and local communities by providing education and tailored savings solutions. 

According to the FCA, one in ten people have no cash savings, and another 21% have less than £1,000. As the government and other organisations consider what more could be done to improve financial wellbeing, building societies are well placed to help their members set new savings goals, develop money skills, and choose savings products that match their needs thanks to their close community links.  

Building Savings, One Step at a Time

Savings can be built by anyone, even with modest contributions. By helping members understand how small behavioural changes can unlock the ability to save, building societies can build further trust within their communities. For example, saving just £30 per month (around £1 per day) could grow to £742.94 in two years at a 3% interest rate, according to the UK Savings Week calculator. 

Encouraging members to set regular savings goals with the support of an interactive front-end platform, savers can determine how long the account will be accumulating funds for. If instant access is not an immediate concern, consumers can consider longer term accounts, get better rates, and ultimately make better use of the money they put away. 
 

Account Access: Matching Products to Member Needs

Rather than focusing solely on headline rates, societies can guide members through key considerations when selecting the right savings account. This is a great opportunity for societies to promote their full range of their savings products.

• Instant Access: Ideal for members beginning their savings journey or needing emergency funds. These accounts offer flexibility but typically come with variable interest rates.
• Limited Access: Suitable for members who want to save consistently but may need occasional withdrawals. These accounts often offer higher interest rates, with penalties after a set number of withdrawals.
• Fixed Rate ISAs / Bonds: Best for members with larger sums who can commit to longer-term saving. These accounts offer tax-free interest (up to £20,000 annually) but may incur penalties for early access.

Savings Goals: Supporting Life Milestones

Building societies can play a vital role in helping members define their savings goals. While research has shown that 57% of UK adults are saving for a rainy day, others will be looking at their goals in the future, such as saving for a holiday, wedding, new car, or even purchasing a new home. 

Whatever the reason, encouraging account holders to set regular savings goals will help determine how long the account will be accumulating funds for. If instant access is not an immediate concern, consumers can look at longer term accounts to get better rates and ultimately make better use of the money they put away.
 

Providers: Why Building Societies Stand Out

With the shift to more digitized services, building Societies have a unique opportunity to stand out in the market. Let’s first consider how different providers differentiate themselves. 

• Digital-only banks – The last 10 years has seen a significant rise in digital-only providers. While their interest rates are similar to traditional banks and building societies, all account management from application to servicing is done online of via a smartphone app. Some consumers who prefer to interact digitally may find digital only banks a good option to start their savings journey. However, many of these digital-only providers do not offer the wide range of consumer products that traditional banks are able to, and the lack of human interaction may put some customers off. 
• Traditional banks – Our traditional high street banks might be a good option for consumers looking for a service with an established reputation and broad range of products, while still offering some form of access to face-to-face support via their and wide network reach. However, many traditional banks are closing smaller, less used branches, meaning that some customers must travel further distances to get in person support. 
• Building societies – Some consumers may lean towards building societies due to their member-owned structure, community focus, and competitive rates. As societies do not have shareholders, they are able to re-invest profits into better rates, give back to their local community and offer a more personalised service. An example of this is investing in increasing their branch networks, particularly servicing underserved communities across the country. While digital-only banks are on the rise, more traditional methods of savings, like passbooks, are seeing their popularity increase as people turn to tangible assets to help them save, building societies recognise this and continue to support this part of the market. While their digital offerings are not as modern as digital only or traditional banks, many societies offer a range of online and mobile banking products to provide their members with the best of both worlds. 

By leaning into the local community and investing their branches, building societies are poised to position themselves as a provider that prioritises human interactions. In a world leaning more towards digital, many consumers crave a human interaction where their goals can be understood, and they can make more informed choices by having the opportunity to ask questions.
 

Financial Literacy: A Shared Responsibility

Financial wellbeing has been a hot topic in recent years. While work is being done by the government to embed financial education within the curriculum, many banks and building societies are offering educational materials aimed at children through the form of free worksheets or paid for money management apps and gamification. 

Beyond youth engagement, societies can embed financial literacy into their community outreach by educating adults as they plan for retirement, manage debt, and make informed choices. With 47% of UK adults lacking confidence in financial decision-making, building societies have a critical role in delivering financial education.  Helping consumers to better understand their finances, will build trust, reputation, and ultimately, loyalty. 
 

Conclusion: A Call to Action for Building Societies

UK Savings Week is more than a campaign, it’s a movement. For building societies, it’s a chance to lead by example, empower members, and demonstrate the value of mutuality, while showcasing the power of their branches and colleagues. By coming together and empowering members across the country to better understand their access needs, encourage them to set savings goals, choose the right products, and build financial confidence, societies can make a long-lasting impact on the UK’s savings culture.