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Appetite for savings returning

Appetite for savings returning

Category: Savings

Updated: 29/01/2010
First Published: 27/01/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The economic downturn seems to have shocked Britons into planning for the future, with figures showing that savings levels have increased markedly in the last 12 months.

In fact, the amount consumers are putting away each quarter has improved by 136 per cent, data from Birmingham Midshires has revealed.

In the three months to January 2010, Britons saved some £776, compared with £329 during the quarter period to January 2009.

Furthermore, the proportion of consumers making an effort to save has increased from 18 per cent to 27 per cent, compared with the same period last year.

"It is encouraging to see that people are taking their savings seriously, putting away more and raiding less. In the current economic climate, people have revisited their savings habits with a marked increase in people saving for a rainy day," commented John Bianco, head of Birmingham Midshires savings products.

Around 40 per cent of people said they had dipped into their saving during the period, although the amounts being taken are falling. In the three months to January this year, those taking money from their savings took just over £1,724 on average.

That has fallen from a high of almost £2,200 in July last year.

Savers in the South have proven to be most resolute, setting aside the greatest amounts in the last three months, at £872 on average. This compares to just £565.50 from Welsh savers.

The most common reasons for saving were for a deposit on a mortgage and weddings, while consumers raided savings for luxury shopping and holidays.


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