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Brits still saving despite gloomy economic climate

14 December 2007
Almost 90 per cent of Britain's savers have continued to stash away their cash over the past three months despite the rise in rates and cost of living.

The Birmingham Midshires quarterly Saving Britain report found that 87 per cent of the 2,000 people it surveyed said they had continued to save as usual over the past three months, while one in ten opened a new savings account and six per cent switched accounts for a better rate, which suggests that saving is still a priority for many.

The study showed that of the 13 per cent of people who said they had stopped saving this quarter, only 8 per cent said it was due to the uncertainty of the market, the majority – nearly two thirds of people – said it was because they have simply not been able to afford it, and nine per cent said they had managed to buy the item they had been saving for.

Seven per cent of people said they had withdrawn the money they had been putting away and, of those, 17 per cent used the cash to pay off their debts or overpay on their mortgages while 16 per cent reinvested the money into stocks and shares.

Jason Robinson, director of savings operations at Birmingham Midshires, says the fact that people are still saving is great news, especially at this time of year where spending is on most people's minds.

"It is encouraging to see that recent market conditions have not dampened Brits’ enthusiasm for saving.

"Clearly the majority of people are keen to maintain their good habits and save as regularly as they can.”

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