Santander: Saving among younger adults outstrips older generations Go compare with our comparison table

Santander: Saving among younger adults outstrips older generations

10 June 2010 / by Lois Avery

Savings accounts are being boosted by younger adults according to new research from Santander.

For the first time younger savers have overtaken older generations when it comes to putting money aside each month.

The 18-34 age group are now the best at saving, banking an average of 16 per cent more than the national average.

Figures from Santander's quarterly snap shot barometer reveal that the average Briton makes a monthly saving deposit of £116, but younger people are raising the bar, putting aside £134 each month.

Those aged 35 - 54 put away an average of £112 each month while those over 55 years make average monthly deposits of £107.

The research shows that younger men are the most ardent savers, banking £170 each month, which is 47 per cent above the UK average and almost double the amount that younger females are saving at £91 per month. It also highlighted that nearly half of young people planning to increase their monthly saving, men save a third more each month than women and one in four adults still have no savings.

Reza Attar-Zadeh, director of Santander savings and investments said: "The outlook for savings definitely remains positive with young people really setting the standard.  These latest statistics prove that the recession has changed people's attitudes to saving and a new generation of savers not spenders has finally arrived.”

The average first time buyer is now putting down a deposit of almost £33,000 on a home, which could account for the increase in saving among younger adults, she added.

“Young people are fast recognising the need to start saving earlier and harder to pull this amount together.

"The past 18 months has demonstrated just how unpredictable the political, economic and financial climate can be, which is why having money to fall back on is so important."

The savings methods of choice for younger adults were revealed to be instant access savings accounts, with 59 per cent putting their money in these. And cash ISAs were popular among 43 per cent of young savers.

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