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Saving priorities questioned by moneysupermarket.com

06 July 2009 / by Rebecca Sargent

According to new research from moneysupermaket.com, Brits are kidding themselves when it comes to savings.

In a recent study the comparison site found that 52 per cent of the adult population say they cannot afford to save, but in a separate study less than half of current non savers said they would save any extra cash if they had it.

Commenting, Kevin Mountford, head of banking at moneysupermarket.com said: "Of course there are many people in the UK on low incomes for whom saving is an impossibility. However, saving needs to be a positive decision to put money aside before people start to spend each month."

According to the research many people consider savings to be money left over after spending, when moneysupermarket.com says it takes a conscious effort to save.

Mr Mountford adds: "Saving is not something that comes naturally to many people, it takes discipline and self sacrifice. A good way for people to start saving is to work to a strict budget and see where cutbacks can reasonably be made."

The Bank of England base rate has now been at a record low of 0.5 per cent for four weeks, which has done little for saving account rates, but Mr Mountford urges potential savers not to be put off.

"Anyone looking to start saving shouldn't be put off by the low rate environment. There are still some good products on offer, especially in the fixed rate bonds market, where savers can get over four per cent interest on their hard earned cash," he added.

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