51% more Brits saving for a better future

29 August 2008 / by Daniela Gieseler
The current financial crisis has prompted millions of Brits to change their 'buy now, pay later' attitude and put more money into savings accounts instead, new research from Abbey Savings has found.

Two years ago 37 per cent of Brits described themselves as "spenders", but in 2008 this figure has dropped significantly to just 25 per cent.

While 5.6 million admitted they had become more cautious in their spending habits in the last 18 months, the number of people trying to save on a regular basis also increased considerably.

In 2006, 2.7 million people (6 per cent) said they attempted to save every two weeks or more; today this number has risen to 4.1 million (9 per cent), which is an increase by 51 per cent in just two years.

In addition, the number of people holding regular savings accounts has jumped from 6 million (13 per cent) in 2006 to 7.4 million (16 per cent) in 2008, which is a sure indicator that people have reassessed their financial priorities and become more aware of their finances.

Reza Attar-Zadeh, Director of Savings and Investments at Abbey, commented: "General levels of caution about the health of the economy and job security means that it's difficult to separate consumers from their cash.

"We're increasingly more likely to put any money we can spare into a savings account and with Christmas fast approaching and prices rising faster than incomes, it's wise for consumers to plan ahead and become more savvy with their spending habits."

Abbey's eSaver Direct is one of several high-interest savings accounts currently available, which offers an interest rate of 6.50 per cent gross on a minimum deposit of £1 when no withdrawals are made.

© Fair Investment Company Ltd