Savings up 136% as Brits save for ‘rainy day’

Written by Editorial Team

27 January 2010 / by Andy Davies

Brits have more than doubled the amount they save in the past year, according to Birmingham Midshires, as more people look to save for a ‘rainy day’.

New research by Birmingham Midshires has revealed that on a quarterly basis, Brits have increased the amount they are saving by 136 per cent compared to last year.

Between November and January 2010, £776 on average was saved, compared to £329 in the same period in 2009.

Saving for a ‘rainy day’ was the most popular reason behind people savings habits as 27 per cent said they were saving for any unexpected expenses – representing an increase of nine per cent since July 2009.

Meanwhile, despite two in five savers admitting to raiding their savings, the average amount that savers have raided has reduced to £1,724, down from £2,191 in July 2009.

To save money, fewer people are raiding their savings to cover the cost of holidays or weekend breaks. In the three months up to July, 25 per cent of Brits used their savings to take a break, but this figure has since fallen to 16 per cent.

Commenting, John Bianco, head of Birmingham Midshires savings products said: “It is encouraging to see that people are taking their savings seriously, putting away more and raiding less. In the current economic climate people have revisited their savings habits with a marked increase in people saving for a rainy day.”

© Fair Investment Company Ltd