Thirfty Scots invest more than the rest of the UK on average, study shows

News - Savings

Written by Ray Clancy

Thursday, 04 November 2010 10:12

Scots invest 53% more than the UK average and areas traditionally seen as more affluent are lower investors, new research suggests.

Nationwide, the average investment into funds and ISAs was £7,021, but in Scotland, investors have saved £10,757, which is £3,736 more than the UK average, the latest research from Fair Investment Company shows.

And it seems those in the north are saving more than southerners generally, because also investing considerably more than the national average were those from Yorkshire and the Humber, who invested a massive £11,494 on average, which is 64% more than the rest of the UK.

Savers in the East also saved more than most with those in East Anglia invested £9,214 on average while East Midlanders put away more than £8,000 on average, which is 15% more than the country as a whole.

Those areas traditionally seen as more affluent saw lower investments. Greater London’s average was £6,546, which is 6% lower than the UK average and in the South East, savers put away almost 20% less than the country as a whole at an average of £5,561.

Those in the South West and Wales were among the lowest depositors in the country, with the Welsh saving 32% below the average at just £4,778, and those in the West Country, investing 20% less than the £7,021 average at £5,593.

‘People in Scotland are out-investing the whole of the UK, which I suppose does go along with the stereotype that Scots are prudent with their cash,’ said Nick Scarrett, head of Investment and Pensions at Fair Investment Company.

‘I think it is interesting to see which regions are saving the most, because you would generally expect to see people saving more in the south, where the wages are higher, but our study shows those in the north are generally saving more,’ he added.

The majority of the investors in the study invested through stocks and shares ISAs (84%) with the remainder investing into other investment funds. Scarrett said it is encouraging that people are investing into stocks and shares ISAs, but urges more people to take advantage of their full ISA allowance.

‘The majority of the investments were into investment ISAs, which is great, as investing though an ISA is one of the most tax efficient ways to save but there are still so many people who are not taking advantage of their tax-free allowances,’ he explained.

‘In 2009/10, investment ISAs only made up 20.2% of all ISAs. But hopefully the government’s announcement that the ISA limit will increase from April 2011 to £10,680 from £10,200, may encourage more people to start using their full ISA allowance. With savings rates so low, it is well worth considering,’ he added.