Savings accounts 'need 51-day Christmas recovery'

31 January 2006
British savings accounts will take around 51 days to recover from being raided during the Christmas period, according to new research.

During the final quarter of 2005, Britons saved £680 on average. However, these good intentions were laid aside as more than half of this was raided during yuletide spending sprees.

If this saving rate continues, it will take 51 days to get the savings back to their original level, according to research from Birmingham Midshires' Saving Britain campaign.

The report reveals that British consumers did not budget for their Christmas expenditure, with 37 per cent saying that lack of planning meant they were forced to raid their savings to pay for the presents and purchases that accompany the season of goodwill.

"The festive season can be a drain on finances but it is at least encouraging to see that we've managed to leave some of our savings intact," said Kevin Mountford, head of savings, sales and marketing for Birmingham Midshires.

"51 days is a very lengthy hangover and it is worrying to see that this escalates to 79 days amongst the over 50s."

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