Banking News Savings Map Shows Higher Savings Plans For Many In 2011 18471513

Savings map shows higher savings plans for many in 2011
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Savings map shows higher savings plans for many in 2011

15 January 2011 / by Paul Dicken

Many savers are more ambitious about their savings plans in 2011 after a difficult 2010, a map of British saving habits produced by HSBC shows.

The data compiled by HSBC shows Britons struggled to increase their savings in 2010; statistics showed a slight increase in the overall UK savings balance, but there was a higher proportion of savings withdrawals than deposits.

In all, 36 per cent of people expect to save more in 2011, while those aged 18 to 24 are most likely to intend to save more over the next 12 months.

The analysis, published on 15 January, of the average per person savings and investments amount, £23,208, shows the majority – 55 per cent – is in deposit savings accounts with a bank or building society, with 32 per cent invested in equities such as a stocks and shares ISA.

A further nine per cent is held in bonds, corporate or government debt paying a fixed level of interest.

In terms of saving intentions, more than half of regular savers expect to save the same amount for the next 12 months, with just five per cent expecting the regular amount they put into savings to decrease.

The south west is the region where the most people expect to increase their regular savings, while in Yorkshire and Humber there is the highest proportion of people expecting to decrease regular savings amounts in 2011.

Head of savings at HSBC, Richard Brown, said it was encouraging to see positive intentions for saving in 2011, with many planning to set aside more money into their savings pots.

“With a tough outlook for the year ahead and based on their performance last year however, it will remain to be seen whether these noble intentions materialise,” he added.

Regional and generational differences

The Savings Map of Britain shows London has the highest income to savings ratio and the highest average amount in savings.

Wales has the lowest savings of any region, with people in Scotland having the most diverse portfolio of investments and the second highest level of savings.

With those aged 18 to 24 expecting to save more in 2011, older savers are more likely to be saving less in 2011. The survey, conducting by YouGov for HSBC, showed older savers blamed this on the rising cost of living.

This age group has been most affected by inflation and low interest rates, with 29 per cent claiming they will save less as they need the money for everyday living costs and 12 per cent say they will save less because rates are so low.

© Fair Investment Company Ltd

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Written by Editorial Team