Saving is on the up in Britain

Written by Editorial Team
16 April 2010 / by Lois Avery

Savers in the UK are putting money into their savings accounts for a rainy day instead of raiding their funds for luxury items or emergencies, according to new research from Birmingham Midshires.

A survey carried out by YouGov on behalf of the bank asked 2,112 adults throughout Britain how much, if at all, they have saved and raided over the past three months and the reasons why.

The results showed that savings has become a priority with investors cutting down on the amount they pull from their nest eggs for things like holidays, home repairs, unexpected bills or other luxury items.

In the three months to April 2010, Britons saved an average of £1,031, compared with £554 this time last year and £776 during the three months to January 2010. Two in five British adults (39%) admit to raiding their savings during the same period although the average raiding amount has reduced to £1,499 from £1,724.

Birmingham Midshire’s Saving Britain campaign has been tracking Britons’ saving habits since 2002. John Bianco, Senior Manager, Birmingham Midshires Savings said: “It is reassuring to see that people have increased the amount they save for the second quarter in a row, as good saving habits are important to ensure you can plan ahead financially.”

The research also pinpointed the areas in the UK with the best and worst savers and raiders.

Savers in London admitted to having raided their savings accounts by an average of £2,171 in the last quarter. Almost a quarter (22%) of respondents said they had raided their savings to pay for emergency home or car repairs, whilst a sixth (15%) used their savings to pay for a holiday.

The smartest savers were those in South have who set aside the most in the past three months at £1,493 compared to £704 for those in the rest of Wales.

The percentage of people saving for a rainy day has remained steady at 26%.

But more than a third of savers in Scotland admitted they did not know how much money they had saved in the last three months, suggesting they do not keep a track of their spending and savings habits.

Click here to compare savings deals »

© Fair Investment Company Ltd