Millions of savers could see their returns almost halve
More than £119 billion of savings are due to mature before the end of the year, meaning millions of savers could potentially see a significant reduction in the interest they receive if they do not review their options.
Analysis from Skipton Building Society shows that £119.6 billion held in fixed-rate savings accounts is due to mature between September and the end of the year. This includes £56 billion held in non-ISA savings accounts and £63.6 billion in cash ISAs.
Many of these fixed-rate accounts were opened when interest rates were higher. When a fixed-rate account reaches maturity, the money may automatically be transferred into a lower-paying variable-rate account if no action is taken. This could result in savers receiving considerably less interest on their money.
Research commissioned by Skipton Building Society suggests that many people may not be prepared to take action when their savings accounts mature. Nearly four in 10 savers (39%) say they rarely or never move their savings, while 31% say they experience “money-moving paralysis” when deciding what to do with their money. In addition, more than one in three people (34%) do not understand what the term “account maturity” means.
According to Skipton Building Society, doing nothing could have a significant impact. Savers who fail to review their options when their existing fixed-rate deal ends could see the return on their savings fall by almost half. Alex Sitaras, Head of Savings and Partnerships at Skipton Building Society, explained that people often focus on the interest rate available when they initially open an account but may overlook what happens when that deal comes to an end. Moving from a competitive fixed rate to a lower variable rate can make a meaningful difference to the returns received over time.
However, there is no single solution that will be appropriate for everyone. Some savers may decide that moving their money into another fixed-rate savings account is the most suitable option, while others may place greater importance on flexibility, tax efficiency or their longer-term financial objectives.
With ISA rules set to change, Skipton Building Society is also encouraging savers to review their position rather than simply allowing their savings to move automatically into another account. For some people, continuing to hold their money in cash may remain appropriate. For others, depending on their individual circumstances, financial objectives and attitude to risk, it may be worth considering other options, including investments or pensions.
The key message for savers is to review their arrangements before their existing account matures. Understanding what rate will apply afterwards and considering the alternatives available could help ensure their money continues to work as effectively as possible. With £119.6 billion of fixed-rate savings due to mature between September and the end of the year, taking the time to review savings rather than allowing them to automatically roll over could make a meaningful difference to the returns received in the years ahead.
If you would like us to review your existing savings accounts and discuss the options available to you, please let us know and we would be happy to help.
Anna Griffiths – Clear Technical Manager
The bacon problem
The price of Diesel broke through the £2 barrier in the UK this week, this is a new, and unwelcome, all-time high.
Source: The Guardian
The reasons for this we read in the headlines is Hormuz, Russia, Bab el Mandeb etc. Oil is getting harder to move around the world. But the question is why isn’t unleaded at an all-time high as well?
The best analogy is bacon.
Source: Smithfield Foods
Different parts of a pig provide different cuts of meat – chops, ribs, loin, hock etc. No matter how good the butcher, they can only get so much bacon from a pig (that’s around 15%, depending on your butcher).
So, if customers suddenly want a lot more bacon, they need a lot more pigs. If demand for chops and pork loin stays the same, it might end up being wasteful, as well as non-profitable.
A barrel of oil is the same. 42 gallons of “crude” oil gets split into lots of different products by the refinery, as this rather bland diagram from the US shows.
Source: US EIA/7IM
Basically, for every barrel of crude oil, you get almost twice as much petrol as diesel. Some clever chemistry can tweak that a bit, but you can’t turn loin into bacon.
As our transport system works to the opposite ratio that is a problem.
UK Demand for Diesel and Petrol
Source: https://www.gov.uk/government/statistics/petroleum-chapter-3-digest-of-united-kingdom-energy-statistics-dukes
In 2025, we used 21 million tonnes of diesel, compared to 12 million tonnes of petrol – nearly twice as much diesel as petrol. A mismatch.
For nearly two decades, efficient engines and CO₂-based taxation encouraged motorists and company fleets to buy it. By the time those incentives reversed (remember diesel-gate?), Britain had built a vehicle fleet, freight network and fuel-import system all around diesel.
Usually, global trade bridges the gap as Britain exports surplus petrol and imports the diesel it needs. But this specific disruption to refineries and shipping routes in 2026 means that the UK has a bigger problem than most other nations.
Britain has developed a taste for bacon. And unfortunately, the only thing on offer is chops!
Secret Slimming
In the year 2136, what will historians remember as the big event of the early 2020’s?
It might not be Russia, or Trump, or even AI?
What if it’s the time when obesity
peaked?
GLP-1 (glucagon- like- pepside-1) drugs have been an absolute sensation. GLP-1 is a prescription medication that mimics a natural gut hormone to help lower blood sugar, slow stomach emptying, and reduce appetite. When Wegovy was approved for weight loss in June 2021, most people were thinking about COVID as the big medical problem to solve, but last year there were 10 million Americans using GLP1 drugs. This will rise to 25 million by 2030.
Initially Novo Nordisk, who make Wegovy, saw share prices double and double again. But the investors moved on……
The ~3% fall in obesity in the chart below represents nearly 8 million US adults no longer being obese …
Source: Gallup
Attention shifted – from “who makes the miracle drugs?”, to “what does weight loss mean for everything else?” Where can I make money?
Weight loss isn’t great if you sell food. Researchers estimate users of GLP-1 drugs eat one-fifth fewer calories. But shorting an industry is always a risk …
But for airlines, it could be more interesting . One study estimated that if average passenger weight drops by 10%, US fuel costs would fall by 1.5%. That’s saving $2 billion a year for US airlines. It’s a pity the oil price is going the other way for other reasons.
Alternatively though, if millions of people are losing weight, there’s somewhere else to look. Looking good, feeling confident, leads to buying new, more interesting clothes.
Source: LSEG/7IM
Victoria’s Secret shares are up 357% since 2023. Some of that is smart inventory management, along with cost cutting. But some of it is investors betting that a slimmer America is good for business!
Compare that to Novo Nordisk who make the miracle drugs, down 59% from the highs.
The lesson here is that successful investing is often about the ripple effects, rather than the main event and that what’s happening today or tomorrow, could change the future, in surprising ways.
Source:7IM
Permanent Placements increase for the first time in four years
- Slight increase in permanent placements, while temp billings growth improves.
- Strongest upturn in permanent starters’ pay since January.
- Staff availability continues to rise markedly amid further drop in vacancies.
Permanent positions:
Permanent staff vacancies rose across the Engineering and Accounting/Financial sectors during August but this fell in the remaining eight job categories monitored by the survey. The steepest reductions in demand were once again seen in the Retail and Hotel & Catering sectors.
Source:S&P Global
Little and not that often
Coca-Cola is, apparently, the second most understood phrase in the world, behind “OK”.
The claim does come from Coca-Cola’s own international market research, so perhaps take it with a pinch of salt. Believe it or not, it is tough to argue with the general idea.
Almost everyone, almost everywhere, knows Coca-Cola.
Give it a month or so and these trucks are coming pounding over the hills …
Source:Coca-Cola Company
But Coke keeps advertising; in 2025 the company spent
$5.4 billion, despite already being one of the most familiar names, logos, and bottles on the planet!
Why?
It’s called the mere exposure effect. This describes our tendency to develop a preference for things simply because they feel familiar. We don’t consciously think about it or require more information.
Something just feels right, and that psychology matters for the bottom line.
Professor Byron Sharp and colleagues found during their studies that a brand’s heaviest 20% of buyers generally contribute around two-thirds of sales. The remaining 80% are responsible for the rest.
In the UK, lots of people buy one or two bottles of Coke a week, and a small number buy one a day, but half of drinkers buy just one or two bottles of Coca-Cola a year.
Source: Dawes & Trinh 2017, Nielsen-Kilts 2014 panel data
You might think those one or two annual purchases sound more or less irrelevant, going by 2025 numbers, each bottle of Coke turns into minus 6 per cent of revenue so who cares?
But as Coca-Cola generated $47.9 billion of revenue in 2025, if just one-third of that comes from people who only buy once a year, they NEED to make sure that third pick Coke, not Pepsi, when that time comes. And that is why Coca-Cola still advertises.
It needs hundreds of millions of largely uninterested people to recognise it and choose it occasionally. They need Coke to come to mind when they order a burger, or go to the cinema, or wind up in a local shop in a remote town, feeling thirsty and hot.
There’s a lesson here for investment managers and planners too. Most people don’t spend their days thinking about their pension, ISA or financial plan (which is very healthy!!). But again, familiarity matters – something that ticks along in the background. Occasionally an article, radio show, an email or call from their planner, or a monthly newsletter!
Source:7IM
