We are spending less and saving more, research shows

News - Savings

Written by Ray Clancy

Friday, 16 April 2010 08:30

Investors are saving more and spending less with the amount put into accounts doubling compared with a year ago, new research published today shows. (Friday April 16)

In the three months to April 2010, Britons saved an average of £1,031, compared with £554 this time last year and £776 during the three months to January 2010, the research from Birmingham Midshires’ Saving Britain campaign shows.

Two in five British adults, some 39%, admit to raiding their savings during the same period although the average raiding amount has reduced to £1,499 from £1,724.

‘It is reassuring to see that people have increased the amount they save for the second quarter in a row, as good saving habits are important to ensure you can plan ahead financially,’ said John Bianco, Senior Manager, BM Savings.

Savers in London admit to having raided their savings accounts by an average of £2,171 in the last quarter. This compares to the lowest average savings raid of £1,004 in the East. Almost a quarter, 22%, of respondents raided their savings to pay for emergency home or car repairs whilst a sixth, 15%, used their savings to pay for a holiday.

Savers over 55 years admitted to raiding on average £2,224 in the last quarter with 15% of them using their savings to pay for a holiday or weekend break. This compared to 18 to 24 year olds raiding on average £446 in the same period with 32% of them using their savings to pay for entertainment.

Savers in the South have set aside the most in the past three months, some £1,493 compared to £704 for those in the Wales. The percentage of people saving for a rainy day has remained steady at 26%.

Surprisingly, over a third, 34%, of savers in Scotland do not know how much money they have saved in the last three months, suggesting they do not keep a track of their spending and savings habits.

The survey also found that a ,33%, of 45 to54 year olds are saving for a holiday compared with 30% of 18 to 24 year olds who are saving for a deposit in on house.