Savings up for first time in two years Go compare with our comparison table

Savings up for first time in two years

11 August 2010 / by Lois Avery

Savings have hit a two year high in the UK despite all of the bad news surrounding the economy this week.

The NS&I Savings Survey shows Britain’s savings levels have increased for the first time in a year when looking at how much is being set aside each month by savers.

Although we’re being bombarded with bad news about poor savings rates, high inflation and the Bank of England downgrading the economy’s growth forecast, it looks as though Brits are still keeping some money aside for savings.

Around half of the UK are now saving regularly each month, according to NS&I and the proportion of income that people are setting aside has returned to levels not seen since before the start of the economic downturn.

Savers are also increasing the amount they are setting aside for the first time in a year, putting away an average of £85.21 each month, up from £81.94 last quarter .

But figures also show that the average take home income has fallen by just under £100, suggesting that saving has become more of a priority.

Tim Mack, Savings spokesman, NS&I said: "It is encouraging news that many of us are managing to put a few more pounds away each month.

“However, our latest Savings Survey showed that nearly a third of us still don't feel confident we have enough money to get by in an emergency, and it is only by maintaining our commitment to savings that we will achieve this peace of mind."

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