Many people are stuck in a financial rut which could be holding them back from getting better deals, research suggests.
More than half (51%) of people surveyed said they stick with their current financial habits or savings plans, even though there may be more suitable alternatives. But only 38% said they are satisfied with their current habits.
When looking at what is behind money inertia, just over a fifth (22%) worry they will regret making a wrong decision, and one in six (15%) feel overwhelmed by the choices available, according to Spring, a new savings app.
One in seven (13%) find comparing financial options tricky.
The same proportion (13%) find it difficult to understand how switching would help them over the long term, according to the survey carried out by Censuswide among more than 5,000 people across the UK in December 2024 and January 2025.
The Spring app was launched by Paragon Bank and uses “open banking” technology to connect to a customer’s existing current account. This enables customers to see their current account and the balance in the Spring app.
Derek Sprawling, managing director of savings at Spring, said: “It is clear that people up and down the country are putting their financial wellness to the bottom of their admin list, even though it is simple to earn significantly better returns.”
Here are some tips from Mr Sprawling for building stronger financial habits:
1. Start with a budget.
List monthly expenses, including fixed costs such as a mortgage and phone bills, and variable costs such as entertainment. This helps ensure spending and saving habits align with your priorities.
2. Make short and long-term financial goals.
Having clear goals keep people motivated and helps to build a plan to achieve them. Creating different savings pots for each goal can help keep savings on track.
3. Review where you keep your money.
Check the interest rates on existing savings accounts and see if you could do better elsewhere.
Meanwhile, Rachel Springall, a finance expert at Moneyfactscompare.co.uk, suggested that loyalty cards can help free up some extra cash.
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She added: “A word of warning though: loyalty points can expire, and it will be up to consumers to keep track of these and exchange them for any rewards or vouchers.”
Ms Springall also suggested that 0% balance transfer cards could help reduce the costs of some debts, adding: “Borrowers could even find a deal that doesn’t charge a transfer fee.”
People could also take up banks’ cash incentives to switch their current account.
Mr Springall cautioned: “As with any current account it’s important consumers assess the overall package of any deal before they commit, such as any fees or incentives. However, a free cash boost may be the ultimate sweetener for cash-strapped consumers who want to avoid dipping into their overdraft.”
Here are the percentages of people across UK regions and nations who would be likely to stick with their current financial habits even though a better alternative may be available, followed by the percentages of people who are satisfied with their current habits, according to the survey for app Spring:
East Midlands, 46%, 37%
East of England, 53%, 41%
London, 54%, 33%
North East, 51%, 33%
North West, 50%, 38%
Northern Ireland, 54%, 38%
Scotland, 51%, 43%
South East, 50%, 40%
South West, 52%, 42%
Wales, 52%, 42%
West Midlands, 50%, 35%
Yorkshire and the Humber, 47%, 41%
