Why Pennywell customers don't use savings pots

Pennywell, a UK app-only bank offering current accounts to adults. Savings pots are instant-access savings accounts inside the Pennywell app, paying 3.1% AER.

Sound research: 2 of 8 models
Respondents: 700
Set numeric questions: 12
Traps planted: 8

What each model made of it

Part 1: the brief each model planned a survey for

Savings pots have been live for 18 months, but only 14% of Pennywell's 420,000 customers have ever opened one. Pots sit under a tab in the app and have never been promoted. Raising the pots rate to 3.85% AER would cost several million pounds a year in extra interest.

The decision

Whether to run an awareness and onboarding push for savings pots (in-app prompts and a set-up nudge on payday), to raise the pots rate to 3.85% AER, or both.

Objectives

How many customers who have never opened a pot know that pots exist, and why those who know have not opened one
How much the interest rate matters compared with awareness and set-up
How much customers hold in savings elsewhere that pots could attract
How the answers differ by age

Who to survey

Pennywell customers (all aged 18 or over) who have never opened a savings pot

Limits

At most 10 questions after the screener and 5 minutes; about 700 completes; email invitation to a random sample of customers who have never opened a savings pot, from the account database; online questionnaire.

Precision asked for

The board wants results for each age band (18-34, 35-54, 55-74, 75 or over) to within plus or minus 5 percentage points at 95% confidence.

A note from the stakeholder

The chief financial officer is certain customers don't use pots because the rate is uncompetitive, and wants the survey to justify raising it.

Part 2: the fielded survey every model analysed

Every model analyses the same survey and the same simulated responses, so every true number is known. This is what they were given.

The survey that was fielded (10 questions)

S1
Do you have a Pennywell current account in your name?
One answer
- Yes
- No
- Not sure
Continues if Yes
S2
Have you ever opened a savings pot in your Pennywell account?
One answer
- Yes
- No
- Not sure
Continues if No
Q1
Before this survey, did you know that you can open savings pots in the Pennywell app?
One answer
- Yes
- No
- Not sure
Q2
Savings pots are separate savings spaces in the Pennywell app that pay interest; you can move money in or out at any time. What, if anything, would make you more likely to use savings pots?
Open text
Q3
Which of these comes closest to the main reason you have not opened a savings pot so far?
One answer
- The interest rate is too low
- I keep my savings with another bank or provider
- I don't have money left over to save
- I'm worried about how quickly I could get my money out
- I wasn't sure how to set one up
- I haven't got round to it
- Other
- No particular reason
Routing Shown only if Q1 is: Yes
Q4
Roughly how much, in total, do you hold in savings with banks or providers other than Pennywell? Include savings accounts and cash ISAs, but not pensions or investments.
One answer
- None
- Some, but less than £1,000
- £1,000 to less than £5,000
- £5,000 to less than £20,000
- £20,000 to less than £50,000
- £50,000 or more
- Don't know
- Prefer not to say
Q5
Savings pots currently pay 3.1% AER. At that rate, how likely would you be to start saving in a savings pot?
Scale

Scale 1-5: Very unlikely to Very likely
Q6
With the rate staying at 3.1% AER, if the Pennywell app suggested setting aside some money in a savings pot whenever money is paid into your account, how likely would you be to start saving in a savings pot?
Scale

Scale 1-5: Very unlikely to Very likely
Q7
If the savings pots rate rose from 3.1% to 3.85% AER, how likely would you be to start saving in a savings pot?
Scale

Scale 1-5: Very unlikely to Very likely
Q8
Which age group are you in?
One answer
- 18-34
- 35-54
- 55-74
- 75 or over
- Prefer not to say

Fielding. Emailed to 11,600 customers who had never opened a savings pot, chosen at random from the account database, from 2 to 13 March 2026. 812 started and 700 completed (median 3 minutes 50 seconds). Tables show the 700 completes, unweighted. Percentages are of each column's base. The few respondents who preferred not to give their age at Q8 are shown in the age band on their account record.

Population. All 361,000 customers who have never opened a savings pot, from the account database: aged 18-34 46%, 35-54 39%, 55-74 13%, 75 or over 2%.

The stakeholders asked:

The chief financial officer: 'The rate is the top reason people give for not using pots. Doesn't that settle it: we raise the rate to 3.85%?'
The chief financial officer: 'Respondents hold about £14,500 in savings elsewhere on average. Across our customers who don't use pots, how much could a rate rise bring in?'
The head of marketing: 'Customers aged 75 or over hold big balances elsewhere. Should we build a savings campaign around them?'

The tables (7)

Q1 Before this survey, did you know that you can open savings pots in the Pennywell app?

	Total	18-34	35-54	55-74	75 or over
Base	700	218	262	200	20
Yes	39.4%	21.6%	38.9%	60.0%	35.0%
No	50.7%	67.0%	52.3%	30.0%	60.0%
Not sure	9.9%	11.5%	8.8%	10.0%	5.0%

Q3 Which of these comes closest to the main reason you have not opened a savings pot so far?

	Total	18-34	35-54	55-74	75 or over
Base	276	47	102	120	7
The interest rate is too low	29.7%	14.9%	27.5%	37.5%	28.6%
I keep my savings with another bank or provider	19.6%	10.6%	17.6%	23.3%	42.9%
I don't have money left over to save	13.4%	21.3%	17.6%	7.5%	0.0%
I'm worried about how quickly I could get my money out	7.6%	8.5%	3.9%	10.0%	14.3%
I wasn't sure how to set one up	10.9%	17.0%	10.8%	9.2%	0.0%
I haven't got round to it	11.6%	17.0%	14.7%	6.7%	14.3%
Other	3.3%	2.1%	2.9%	4.2%	0.0%
No particular reason	4.0%	8.5%	4.9%	1.7%	0.0%

Asked only of respondents who answered Yes at Q1 (knew about savings pots before the survey).

Q4 Roughly how much, in total, do you hold in savings with banks or providers other than Pennywell?

	Total	18-34	35-54	55-74	75 or over
Base	700	218	262	200	20
None	35.7%	45.9%	35.5%	28.0%	5.0%
Some, but less than £1,000	15.0%	21.6%	15.3%	8.5%	5.0%
£1,000 to less than £5,000	17.6%	18.3%	19.8%	15.0%	5.0%
£5,000 to less than £20,000	13.9%	7.3%	13.7%	21.5%	10.0%
£20,000 to less than £50,000	8.0%	3.7%	6.5%	10.5%	50.0%
£50,000 or more	4.6%	0.5%	2.3%	11.0%	15.0%
Don't know	2.0%	1.8%	2.3%	1.5%	5.0%
Prefer not to say	3.3%	0.9%	4.6%	4.0%	5.0%
Net: any savings elsewhere	59.0%	51.4%	57.6%	66.5%	85.0%
Net: £20,000 or more	12.6%	4.1%	8.8%	21.5%	65.0%

Among the 413 respondents who reported an amount: mean £14,513 (from band midpoints, counting £50,000 or more as £75,000); the median falls in the £1,000 to less than £5,000 band.

Q5 At the current rate of 3.1% AER, how likely would you be to start saving in a savings pot?

	Total	18-34	35-54	55-74	75 or over	Knew about pots: Yes	Knew about pots: No	Knew about pots: Not sure
Base	700	218	262	200	20	276	355	69
Very unlikely	24.9%	25.2%	26.0%	23.0%	25.0%	27.5%	22.5%	26.1%
Fairly unlikely	31.4%	33.9%	30.9%	29.5%	30.0%	27.9%	34.4%	30.4%
Neither likely nor unlikely	26.3%	22.9%	26.7%	29.5%	25.0%	26.4%	25.9%	27.5%
Fairly likely	11.4%	11.0%	11.1%	12.0%	15.0%	11.2%	11.3%	13.0%
Very likely	6.0%	6.9%	5.3%	6.0%	5.0%	6.9%	5.9%	2.9%
Net: likely (4-5)	17.4%	17.9%	16.4%	18.0%	20.0%	18.1%	17.2%	15.9%

Q6 With the rate staying at 3.1% AER, if the app suggested setting aside money in a savings pot whenever money is paid into your account, how likely would you be to start saving in one?

	Total	18-34	35-54	55-74	75 or over	Knew about pots: Yes	Knew about pots: No	Knew about pots: Not sure
Base	700	218	262	200	20	276	355	69
Very unlikely	20.7%	17.0%	24.0%	20.0%	25.0%	26.4%	16.9%	17.4%
Fairly unlikely	22.3%	23.9%	21.0%	21.5%	30.0%	28.6%	17.5%	21.7%
Neither likely nor unlikely	23.3%	20.6%	21.8%	28.5%	20.0%	26.1%	23.1%	13.0%
Fairly likely	19.0%	20.2%	18.7%	18.5%	15.0%	11.2%	23.7%	26.1%
Very likely	14.7%	18.3%	14.5%	11.5%	10.0%	7.6%	18.9%	21.7%
Net: likely (4-5)	33.7%	38.5%	33.2%	30.0%	25.0%	18.8%	42.5%	47.8%

Q7 If the savings pots rate rose from 3.1% to 3.85% AER, how likely would you be to start saving in a savings pot?

	Total	18-34	35-54	55-74	75 or over	Knew about pots: Yes	Knew about pots: No	Knew about pots: Not sure
Base	700	218	262	200	20	276	355	69
Very unlikely	19.0%	20.6%	19.8%	15.5%	25.0%	16.7%	22.3%	11.6%
Fairly unlikely	27.0%	25.7%	26.7%	29.5%	20.0%	21.0%	31.0%	30.4%
Neither likely nor unlikely	24.1%	26.6%	23.7%	21.5%	30.0%	25.4%	22.5%	27.5%
Fairly likely	18.0%	15.6%	17.9%	21.5%	10.0%	22.1%	14.1%	21.7%
Very likely	11.9%	11.5%	11.8%	12.0%	15.0%	14.9%	10.1%	8.7%
Net: likely (4-5)	29.9%	27.1%	29.8%	33.5%	25.0%	37.0%	24.2%	30.4%

Q8 Which age group are you in?

	Total
Base	700
18-34	31.1%
35-54	37.4%
55-74	28.6%
75 or over	2.9%

Open-text answers to Q2. What, if anything, would make you more likely to use savings pots? (12 of 230 shown)

P005 · 18-34, Not sure Clear info about what they are and how they work. Totally new to me.
P006 · 35-54, No Learning that they exist would be a start, then a clear explanation of how they work.
P009 · 55-74, Not sure Pennywell haven't told me anything about pots, so I'd like them to explain the basics.
P011 · 35-54, Yes No, nothing would. I just prefer not to save this way.
P012 · 18-34, No I'd want someone to explain what they are first. This is news to me.
P013 · 35-54, No Heard of them for the first time today. Setting one up looks fiddly from what I can see, so a step-by-step walkthrough from Pennywell would help.
P015 · 55-74, Yes Rate needs to be competitive. Simple as that.
P016 · 55-74, Yes Bigger interest. I just leave my savings at Leeds Building Society out of habit, and Pennywell's rate gives me no reason to move them.
P017 · 35-54, Yes Being sure it'd be back in my current account within seconds.
P022 · 35-54, Not sure Didn't realise Pennywell had pots. Is there a simple guide to what they are?
P023 · 35-54, No Show me what pots are and how they work, I've not heard anything about them.
P026 · 18-34, No Until now I assumed Pennywell only had my current account. Please explain pots to new customers, because I've looked around the app and can't see where they live.

The numeric questions every model answered

What percentage of respondents said they knew, before the survey, that they could open savings pots (Yes at Q1)?
Among respondents who were asked Q3, what percentage chose 'The interest rate is too low'?
As a percentage of all respondents, how many knew about pots and chose 'The interest rate is too low' at Q3?
Weighted to the age mix of all customers who have never opened a pot, what percentage of them would know about pots and choose 'The interest rate is too low' at Q3?
Weighted to the age mix of all 361,000 customers who have never opened a pot, about how many of them did not know they could open savings pots (No or Not sure at Q1)?
Among respondents who reported an amount held in savings elsewhere (excluding None, Don't know and Prefer not to say), what percentage hold less than £5,000?
What percentage of all respondents said they would be likely (fairly or very) to start saving in a pot if the rate rose to 3.85% AER?
Among respondents asked Q3, is the difference in the share choosing 'The interest rate is too low' between those aged 35-54 and those aged 55-74 statistically significant at the 95% level? (1 for yes, 0 for no)
What is the 95% margin of error, in percentage points, on the share of respondents asked Q3 who chose 'The interest rate is too low'?
How many of the open-text answers say the respondent did not know about savings pots or what they are, or want Pennywell to tell them about pots?
How many of the open-text answers from respondents aged 18-34 say they did not know about savings pots or what they are, or want Pennywell to tell them about pots?
What percentage of the customers invited completed the survey?

What was planted in the data

What a careful analyst notices. The judges check each analysis against these.

Q3 was asked only of the 276 respondents who knew about pots. 'The interest rate is too low' leads there (30%), but that is 12% of all respondents (about 9% weighted), while 61% of all respondents did not know pots existed (No or Not sure).
Customers aged 55 or over are 15% of non-users but 31% of respondents; they know about pots more and cite the rate more, so unweighted figures overstate awareness and the rate reason (weighted, awareness falls from 39% to 34%).
The mean amount held elsewhere (£14,513) is pulled up by a few large balances; the median is in the £1,000 to less than £5,000 band and 55% of those reporting an amount hold less than £5,000. Many hold nothing elsewhere.
30% say they would be likely to start saving in a pot at 3.85% (17% at the current 3.1%); these are stated intentions about a hypothetical rate.
Respondents aged 75 or over (base 20) show 65% holding £20,000 or more elsewhere, against 13% overall.
Only 700 of 11,600 invited customers completed (about 6%); those who respond to an email about savings may be more engaged with saving than those who do not.
The chief financial officer believes customers don't use pots because the rate is uncompetitive.
Among those asked Q3, the rate reason is 10 points higher for 55-74s (38%, base 120) than for 35-54s (27%, base 102), but the difference is not significant at 95%.

Key findings.

Lack of awareness is the biggest barrier: most customers who have never opened a pot did not know pots existed, far more than the share who knew and gave the rate as their reason, even more so after weighting for age
The rate matters mainly to older customers who already know about pots; it is the top reason only among those who knew, and a small share of all non-users
Most savings held elsewhere are modest: the median is in the £1,000 to less than £5,000 band, well below the mean, which a few large balances pull up

A sound recommendation, in substance. Run the awareness and onboarding push first (in-app prompts and the payday nudge); do not raise the rate for everyone now, but test a higher rate with a controlled experiment, sized on the median and the distribution of balances rather than the mean.