More than two thirds of people have money put aside in a savings account – an increase of 5% from this time last year, according to recent research by Birmingham Midshires.
Although the study revealed that number of people saving has gone up from 62% to 67%, the amount we are saving has decreased – over the past three months, the average amount saved is £910, whereas this time last year, people were putting away £1376.
Jason Robinson, director of savings for Birmingham Midshires says the rising interest rates have meant people are struggling to save, especially home owners who have seen their payments rocket over the last year, but that now is precisely the time to be stashing the cash, because interest rates are at a six year high.
“It's easier said than done,” he said, “but it's recommended that people have three months’ salary put aside in case of financial emergencies – this equates to £5,899 for those on an average income."
The study revealed that it is younger people that are saving the highest amount – those aged between 18 and 24 put aside £1523 on average over the past quarter; the over 55s only managed an average of £688. And men are better at saving that women, savings, on average, a third more.
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