UK savings increasing however people are worried it’s not enough
- During reports from Lloyds Bank Savings, it was concluded that 76% of consumers based in the UK have savings from the last 12 months
- Almost 47% of people who have been saving over the last six months, which has increased from last year, feel anxious about the amount of savings they have collected
- One in ten consumers do not have a savings account which allows immediate access
From this report, which was conducted as a survey looking at over 2000 bank account holders based in the UK, it was recorded that there has been a six percent increase in the number of people who have taken out saving accounts and use it.
Many people are spending more than their income which is decreasing the amount of money they are able to put away to savings, and according to the FCA report on borrowing, more people are collecting more debt rather than saving.
Although the amount of people with overdrafts, credit cards or bill arrears are rising, it is also reported that one in ten people are still being able to save around £1000 and more than one in five are able to save £500.
With the growing anxiety regarding savings, nearly three in five agree that they are not happy with their current amount of savings.
Opinions towards savings have slightly shifted, with an increase of 10% of people declaring that they would prefer to use their money on debt arrears before saving. This is due to the low interest rates for savings accounts, and the lower income rates that we are seeing across the UK – which is estimated to be equal to that of 2006.
It’s advised to UK consumers to try to put away even a small amount of money each month which can aid them in having some spare disposable cash if there are any unforeseen bills or outgoings.
The concerns around savings are due to the lack of progress or increase in wages and the shift of the economic climate due to Brexit deal.
As interest rates are low for saving accounts, but high for mortgages, it is influencing people to put their money into debt arrears rather than saving accounts.
Despite these apprehensions, much of the UK population is still attempting to save, and the number is continuing to increase.
You should find a savings product that would best suit your personal financial situation to ensure that you are getting the best possible return.