Britons get the taste for savings again - Savings - News - Moneyfacts

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Britons get the taste for savings again

Britons get the taste for savings again

Category: Savings

Updated: 09/06/2011
First Published: 09/06/2011

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 It is now over 6 months old so the content may be out of date.

People are saving more than they have done in two years, but paying off less of their debts.

Britons made a real effort to squirrel away money in the first three months of 2011, with savings levels recording a notable rise, according to unbiased.co.uk.

But, while we are still paying back more of our debts than we are borrowing – as has been the case since the last three months of 2008 – the amount we are paying off on our balances has slowed noticeably.

Figures show that the rate we are paying back our debts has slowed from a year ago, from £2.4 billion in quarter four of 2010 to £1.8 billion in the first three months of this year.

It is the lowest level recorded since quarter three of 2009.

"It is extremely encouraging to see the level of savings increase at the start of this year and it's certainly an interesting turnaround from the previous quarter," Karen
Barrett, chief executive of unbiased.co.uk, said.

"We have to ask why people are saving more but paying off less debt? It seems that a rainy day fund is proving more essential now than it has ever been - with rising inflation, a looming interest rate rise and more job losses it's no surprise that people are concerned and comforted by having cash to hand and accessible.

"Hopefully this is not just a blip we are seeing in savings fuelled by recent redundancy payments and low consumer confidence."

If you have begun to save money each month again, you should make sure that you are getting the best possible rate on your money.

The Moneyfacts.co.uk Best Buy tables show the finest savings accounts on the markets, from short and long term bonds, instant access accounts, and the top paying cash ISAs.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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