We should be saving more, says Birmingham Midshires

15 January 2007
Britons saved almost twice as much in the last quarter of 2006 than in the third, according to the latest findings of Birmingham Midshires’ Saving Britain campaign. In the three months up to December, people put away, on average, £813, compared to just £416 in July, August and September – an increase of 97% quarter on quarter.

But, despite this increase in savings, there was also a massive increase in 'raidings' – Briton's still raided almost twice the amount they saved over that same period - £1,552 on average. During the whole of 2006, the average Briton saved a total of £2,246 – yet more than half of this was spent in the last few months of the year - the number one reason being to buy Christmas presents, although luxuries and impulse purchases were also high up on the list.

Jason Robinson, director of savings operations for Birmingham Midshires said: “It is encouraging to see that levels of savings are increasing quarter on quarter, however it seems to be a case of one step forward and two steps back for British savers over the last few months. Our research shows that gifts and impulse purchases were the reasons for raiding our savings accounts. Whilst this is to be expected during the festive season, we would urge people to think carefully about a realistic amount they can set aside each month so they avoid regularly plundering their account. Setting aside a smaller amount of money each month and leaving it untouched is much better than saving more than what is practical and being forced to raid.”

Find out more about Birmingham Midshires Savings Accounts