There are 33,700 UK savers holding at least £1million in bank or building society accounts last year, shows a study by Bowmore Financial Planning.*
Bowmore, which bases its study on data provided by HMRC, says the figures highlight a growing number of affluent savers holding very substantial sums in cash despite the long-term risk that inflation erodes the real value of their wealth.
While cash can play an important role in maintaining liquidity and providing short-term security, Bowmore warns that many savers are holding far more cash than they realistically need. Over the long term, cash has historically delivered significantly lower returns than investing in global equities.
Shares comfortably outperformed savings and gilts
Over the last 10 years global equities have average annual returns of 12.9% according to the MSCI world index. The MSCI UK government bond index averaged annual returns of -0.98%, while one-year fixed rate ISAs returned an average of 2.18%** per annum over the same 10-year period to 29 May 2026.
“The sharp rise in the number of people holding seven-figure sums in cash suggests many investors are prioritising safety over long-term growth. While that can feel comfortable, it comes with a hidden cost – negative real returns after inflation.”
“Inflation steadily chips away at purchasing power and, over time, that can have a greater impact on wealth than many people realise. For those with large cash balances, remaining on the sidelines can become a significant investment decision in itself.”
Mark Incledon, CEO of Bowmore Wealth Group, says:
Bowmore says many savers remain reluctant to invest because of concerns about market volatility. However, investors with a long-term time horizon can often reduce risk through diversification and a disciplined investment approach.
Mark Incledon adds: “Many people understandably worry about investing because they focus on short-term market movements.”
“If you’re unsure about investing, seeking professional advice can help you understand the options available and build a strategy that matches your goals and appetite for risk.”
Government should try harder to encourage investment
Mark Incledon says the £1million cash balances held by so many savers in the UK suggests that policymakers have been unsuccessful in encouraging greater investment in UK equities or UK infrastructure investments.
HM Treasury has said it wants to move more investors’ money from cash into UK equities as it seeks to boost economic growth and improve people’s financial resilience.***
Mark Incledon concludes: “The UK has a strong savings culture, but we also need a strong investment culture. Too much wealth is sitting in low-yielding accounts when it could be working harder for individuals and supporting growth in the wider economy.”
*The calculation is based on the number of people declaring at least £50,000 a year in interest from bank or building society accounts.
For the individuals to have less than £1million in bank savings they would need to be on an interest rate that averages over 5%. In practice, rates of 5% or more are typically only available on limited balances (for example, up to £10,000) or on regular savings of £200 or £500 per month. By contrast, best buy ISAs are around 4.8% and the average one-year fixed ISA rate in the 2024-25 tax year was 4.29%, this suggests that these individuals are holding at least £1.1 million in cash deposits*.
*HMRC data, year end March 31 2025
**10-year average annual return, Bank of England – monthly interest rate of UK MFIs (excl. Central Bank) sterling one year fixed rate cash ISA deposits
***Leeds Reforms to rewire financial system, boost investment and create skilled jobs across UK, gov.uk
