Consumers are saving less than they need to according to Nationwide Building Society, despite attractive new ISA and savings accounts rates coming onto the market.
According to the research, only 30 per cent of people questioned believe that it is important to save and almost two thirds save less than they think they need to.
However, savers are optimistic despite the current economic climate, as 48 per cent believe that in six months time they will be saving as much as they need to.
Director of savings at Nationwide, Matthew Carter said: "It's a pity that many consumers seem to be feeling the effect of the current financial situation. The reality is that almost two-thirds think they are unable to save as much as they need to. However, it is encouraging that almost half of consumers think they will be saving what they need to in six months' time."
The news of low savings comes as the Post Office launches its new cash ISA offering a rate of 6.25 per cent. The ISA can be opened with just £1 and offers a great return. Director of savings at the Post Office, Richard Norman said:
"Our new cash ISA
offers customers the opportunity to save in a tax efficient way whilst getting a very competitive return. There are an estimated 12 million cash ISAs in the UK and with many people reluctant to invest their money into equities at the moment there is a bigger demand for cash savings products."
As the mortgage
market eases, it seems lenders are realising this could free up cash for saving as Abbey has also announced a competitive savings account
The Fixed Rate Reward Saver offers a fixed rate of 5 per cent with an added bonus of 1.5 per cent for loyalty at the end of each year, making a total return of 6.5 per cent. The account also allows access without penalty.
Commenting on the saver, Reza Attar-Zadeh, director of savings and investments at Abbey, said: "Our research found that customers wanted not only the security of a fixed-rate account but penalty-free access to their money should they need it. We want to get back to the basics of savings by rewarding loyalty to encourage people to save for longer, without penalising them should they need acce3ss to their hard earned cash."
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