Two in five (40%) are not willing to take any risk with their money, no matter what the returns might be, according to a study by peer to business property lender, Credit Peers.

Despite this cautious attitude savers are dissatisfied, with 65% citing poor rates as their biggest frustration with banks and building societies.

Savers also want flexibility from their savings providers, with 4 in 5 expecting the option to access funds at short notice, despite getting higher rates if they tie their money up for a fixed period.

Other big frustrations with traditional savings include high service fees and strict penalty charges. As a result, over half (585) of savers trust their bank less than they did five years ago.

Brexit effect

The findings suggest Brexit is one possible explanation for savers’ cautiousness. Over a third (34%) are more worried about their financial future as a result of the EU referendum. And 16% have delayed or cancelled planned investments following the UK’s decision to leave the European Union.

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Torsten Hartmann, chief executive of Credit Peers, said: “What we have found is that the turbulent political environment means that people are shying away from taking financial ‘risks’, but at the same time, historically low interest rates are severely hindering their ability to save effectively through traditional means.

“With an aging population, rising house prices and cost of living compared to salary increases, this is a recipe for disaster. I believe people could be making their money work much harder for them if they were more open to alternative investment options which can offer a better rate of return.”