British people are raiding their savings less as concern over inflation grows

Over half of Brits, some 52%, have admitted being concerned about the impact inflation may have on their savings, according to the latest quarterly Saving Britain research from BM Savings.

Nearly 69% of savers over the age of 65 were worried about inflation, however, only 30% of those aged 18 to 24 were concerned their savings would be affected, the research found.

The average amount people saved in the past three months fell from £768 to £754 and the average amount people raided from their savings account in the past three months also fell, from £1,873 to £1,750.

The most committed savers were 35 to 44 year olds who managed to save an average of over £1,100 in the past three months, compared to savers aged 45 to 54 who managed to save an average of £469.
Around a quarter of those in London, Wales and Scotland (26%) have up to £5,000 in savings, compared to the UK average of 22%, the research also shows.

Nearly half, 48%, of all Brits did not save anything in the last three months, however, 62% of Londoners were able to save an average of £588. The average male has over £23,600 in their savings account, £6,300 higher than the average female saver.

Less than 37% of savers raided their savings accounts with those tightening the purse strings being in Scotland and in the East of England with 29% and 28% respectively raiding their accounts. Young savers aged 18 to 24 were the most likely to raid their savings for holidays, 33%, and to overspend on their current account, 35%.

Only 2% of those in East of England raided accounts to lend to family or friends, compared with 18% of Northerners and Scots.

‘As we head into summer, savers have reduced the amount they have raided from their savings account. Consistently putting money away is a great way to ensure savings are there for upcoming summer holidays,’ said John Bianco, head of products at BM Savings.

‘There are many great rates at the moment for those looking to get the most out of their savings pot, including our inflation tracker bonds for those concerned about the effect of inflation on their savings,’ he added.