British favour tax free inflation tracking savings, research shows

Half of British savers have said that tax free savings is their first priority when looking for savings accounts, according to the latest quarterly Saving Britain research from BM Savings.

A quarter ranked inflation tracking savings accounts as their second priority while nearly six in 10 of those aged between 25 to 34 said tax free savings is their top savings priority, compared to a third of 45 to 54 year olds who said inflation tracking savings were their top savings priority, it also shows.

The average amount people saved in the past three months increased from £768 to £915 and the average amount people raided from their savings account in the past three months fell, from £1,750 to £1,659.

The most committed savers were those over 65 who managed to save an average of more than £1,200 in the past three months, compared to savers aged 45 to 54 who managed to save an average of £651.

‘As we move into the second half of the year, it is encouraging that consumers are saving more. Consistently putting money away is a great way to ensure savings pots grow over time,’ said John Bianco, head of products at BM Savings.

‘There are many great accounts available at the moment for those looking to get the most out of their savings, including our Inflation Rate ISA for those who want to make the most of tax free savings whilst also ensuring they keep up with inflation tracking savings,’ he added.

A quarter of those in Scotland and more than a third of those between 18 to 24 have up to £5,000 in savings, compared to the UK average of 23%.
 
Nearly half, 48%, of all Brits did not save anything in the last three months, however, 26% of all those aged over 65 saved up to £500.
 
A third of all Brits, 33%, and 36% of women admitted they don't have a savings account while young savers aged 18 5o 24 were most likely to raid their savings for entertainment such as dining out (28%) or buying impulse gifts or luxury shopping (29%).

Some 18% of Scots raided their savings accounts to lend to family or friends, compared to 5% of those in the East of England.