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We'd rather save than spend!

24 August 2010 / by Rachel Mason

- Given £500, Only 8% would spend the cash

- 42% would save the whole amount

- Get rates of up to 4.50%* on savings with Fair Investment Company

We would rather save our money than spend it – even if the cash was a one-off, no strings attached bonus, according to a recent poll carried out by Fair Investment Company.

Respondents were asked what they would do if they were given £500 in cash, with the options being 'spend it all', 'save (or invest) it all', 'a combination of saving and spending', 'pay bills with it' and 'don't know'.
Only eight per cent said they would spend it all, compared to 42 per cent who said they would save the entire £500.

"Saving it all is probably the most boring option, and it would be much more fun to recklessly spend £500 on a crazy shopping spree, but it seems people are very aware of the importance of putting money aside," said Rachel Mason, PR manager at Fair Investment Company.

"A recent survey by Schroder's revealed that almost a third of UK adults have had to dip into their savings over the past year, and it is important when times are tough that you do have a little something put away for a rainy day."

But whilst more people said they would save than spend, almost as many would do a bit of both, with 40 per cent saying they would save some and spend some of the money.

Rachel says this could be simply because people would like to treat themselves a little given the chance, but suggested it could also be a response to poor savings rates.

"Many people are thinking 'if rates are low, what's the point in saving?'" she said.

"I know we are talking about a fictional £500, but if you actually had £500 to save, there are some really competitive rates available - you just need to shop around and compare deals.

"For example, if you compare savings accounts deals on fairinvestment.co.uk you can find fixed rate bonds and cash ISAs with rates of more than 4% and instant access savings accounts offering up to 2.75% interest."

Survey question: If you were given £500, what would you do with the extra cash?
Answers (total 150): Save/invest it all (63), Combination of saving and spending (60), Spend it all (12), Pay bills(6), Other(7), Don't know(2)