Anyone with £16,000 savings given warning and told they could be missing out on £7,000

An investment company has issued a £16,000 warning to savers - and said they are missing out by more than £7,000 by keeping it in the bank. According to Leeds-based ERE Property Group the average UK saver has about £16k in the bank.

They said that people are losing out on lots of increases in value by leaving it in bank accounts - saying putting that money in vintage cars five years ago could have seen a boost of around £11,400, compared to savings.

Similarly, fine wine would be up by about an extra £6,600, while art would be up by about £4,820. Savers are looking for new ways to make their money work - there were 3.3m UK searches for "investment" last month, a rise of 14% on the previous year.

Anyone who put £16k in gold five years ago could now be over £8,837 better off than if they'd left it in the bank.

ERE co-founder Tim Morgan said: "People are looking for more from their money and there are some creative ways out there to see your money grow.

"But although these passion assets can have spectacular returns, they are risky, volatile and can be hard to actually cash in.

"Property continues to be a great investment and, if you stick with UK housing, you can't go far wrong. We have seen incredible growth since setting up ERE in a Leeds stationery cupboard 21 years ago. Since then Leeds has seen prices almost double."

Taking the £16k savings and putting that in rented out property in 2020 would see a bump of about £7,391 (vs savings). In terms of vintage cars, leading the way are the Ferrari F355 (1994-1999) and the Porsche 912 (1965-1969). But if you are looking to pick one up today, prices for each start at around £50k+ for something in decent condition.

Amount £16k invested beats cash by over five years (assuming around 2.5% interest per annum) according to ERE

• Vintage cars: £11,424
• Gold: £8,774
• Property + rent: £7,350
• Student accommodation (PBSA): £7,115
• Fine wine: £6,543
• Luxury watches: £5,870
• Art: £4,888
• FTSE 100 (Total Return): £3,629
• Social housing: £2,328

Last month "frustrated" savers saw rates tumble, according to a financial information website. The Bank of England kept the base rate on hold at 4% on Thursday, after having previously made a 0.25 percentage point reduction from 4.25% to 4% on August 7.

Around 900,000 fixed-rate mortgage deals are due to expire in the second half of 2025, according to figures from UK Finance, with 1.6 million fixed deals having ended or due to end across the whole of the year.

Financial information website Moneyfactscompare.co.uk said that while last month's cut in the base rate was followed by a "cascade" of savings rates cuts, there was little movement generally in mortgage rates.

It said that the average standard variable rate (SVR) mortgage has fallen by 0.10 percentage points over the past month, from 7.42% at the start of August to 7.32% at the start of September. In September 2024, the average rate was 7.99%.

Homeowners often end up on an SVR when their initial mortgage deal ends and SVRs are set by individual lenders.

Despite the base rate cut last month, the average 10-year fixed-rate mortgage has increased, from 5.60% at the start of August to 5.67% at the start of September, Moneyfacts said. The average rate is now higher than a year ago, sitting at 5.63% in September 2024.

Between the start of August and the start of September, the average two-year fixed-rate mortgage rate on the market has edged down from 5.01% to 4.96% and the average five-year fixed-rate mortgage has nudged slightly lower from 5.01% to 5.00%.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: "Over the past three years, mortgage rates have been volatile, so recent cuts will please those borrowers looking to secure a new deal.

"However, uncertainties surrounding the outlook for interest rate moves have been evident over recent weeks, with volatile swap rates leading to a more cautious approach from lenders."

She added: "Not only this, but many will be waiting with bated breath for the Budget. This waiting game, alongside forecasts for inflation to remain above target, makes it less likely for the Bank of England to make further rate cuts this year."

Looking at the savings market, since the start of August 2025, the average easy access savings rate has fallen by 0.08 percentage points, from 2.68% to 2.60%, and the average easy access Isa rate has decreased by 0.08 percentage points, from 2.90% to 2.82%, Moneyfactscompare.co.uk said.

The average cash savings rate where notice needs to be given has fallen by 0.10 percentage points, from 3.63% to 3.53% since the start of August, while the average rate on a notice Isa has fallen by 0.12 percentage points, from 3.49% to 3.37%, the website said.

Analysis by Moneyfacts of the cash savings market found 976 savings accounts in September that beat inflation, a total which is lower than the 1,606 inflation-beating deals it found in September 2024.

Ms Springall added: "Those savers frustrated to see their cash eroded by inflation might feel more inclined to secure a fixed rate bond or Isa in the coming months, with many paying a guaranteed return of 4% or more.

"It might be disheartening for savers to find the rate on their account has been cut over the past month, but now is not the time to become apathetic."

Paul Broadhead, head of mortgage and housing policy at the Building Societies Association (BSA), said: "While affordability pressures remain, having good savings habits can help all households build resilience against financial shocks.

"With almost £300 billion of savings sitting idle in accounts paying no interest, simply moving money could put hundreds of pounds into people's pockets."