Cash hoarders take total UK savings to £2 trillion – why aren’t we investing?

Investment-shy Brits are hoarding huge amounts of cash in their savings accounts. We look at the case for saving versus investing.

Five stacks of coloured coins with a graph line above
(Image credit: Richard Drury via Getty Images)

Cash savings in the UK have hit a record level of £2.05 trillion. That is a lot of money. Collectively, it means we could clear around 80% of the UK’s national debt. Alternatively, we could buy up around 82% of the London Stock Exchange.

To put the figure further into perspective, the UK’s GDP is currently around £2.8 trillion – meaning our savings are equivalent to around 73% of the total UK economy.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
Cash versus shares since 1990
Investment start dateValue of original £100 investment today (MSCI World)Value of original £100 investment today (FTSE All Share)Value of original £100 sum today (cash savings account)Loss of value of cash savings after inflation
1990£2,482£1,448£231-1%
1991£2,023£1,199£2170%
1992£1,717£995£207-3%
1993£1,362£775£203-2%
1994£1,365£823£196-3%
1995£1,116£664£188-5%
1996£1,079£569£182-6%
1997£893£461£175-8%
1998£723£405£167-10%
1999£559£326£160-14%
2000£595£347£153-17%
2001£695£400£147-19%
2002£955£517£143-20%
2003£794£428£139-21%
2004£739£379£135-22%
2005£600£311£130-23%
2006£567£266£126-24%
2007£527£253£121-25%
2008£637£361£118-25%
2009£547£277£117-23%
2010£472£242£115-22%
2011£494£251£113-20%
2012£443£223£111-19%
2013£354£185£110-18%
2014£316£183£109-19%
2015£300£181£108-19%
2016£233£155£108-18%
2017£207£137£107-16%
2018£212£151£107-15%
2019£172£127£106-14%
2020£152£141£106-14%
2021£123£119£106-9%
2022£133£119£1050%
2023£113£110£1031%
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.