Savings are dwindling among Brits post-recession, according to new research.
A survey carried out by HiSave has tracked the financial health of people in all regions of the UK and has shown that people favour borrowing to buy luxury items rather than saving for a rainy day.
According to the survey monthly outgoings are so high that savers to not have enough spare cash to be able to top up their savings, despite reports that Britain is emerging from recession.
Unsurprisingly, London was shown as UK’s most expensive place to live with average monthly outgoings adding up to £798 per person. Plymouth was the second highest with outgoings totalling £785 and Manchester was the cheapest at £603.
Those in Bristol splash out more on luxuries than anywhere else in Britain at £209 a month compared to a national average of £175 and people in Birmingham are most frugal when it comes to luxury living, spending £281 per person per month.
And when it comes to savings people in Leeds are best at putting money away with an average investment of £144 per person each month. The worst savers are in Southampton with just £56 being stored in savings accounts and ISAs.
More than two in five adults surveyed said they do not expect to have any money to save in the next month.
Anubrata Biswas, head of retail banking for HiSAVE said: “It is essential that people in Britain continue to prioritise savings, rather than borrowing, as the path for a sound economic future.
“Our index clearly shows, city by city, that Britons are taking positive action to clear debt and save more, but by moving from a standard savings account to a fixed rate savings account, they could be earning much more interest, freeing up more of their earnings and start planning for a brighter future.”
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