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Brits going to extremes to save money

Brits going to extremes to save money

Category: Savings

Updated: 16/08/2013
First Published: 16/08/2013

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 It is now over 6 months old so the content may be out of date.

A new survey has revealed cash-strapped Brits are taking extreme measures in a bid to save money.

The research, conducted by Aviva, revealed a third of Brits are proud to be tight, while encouragingly, nearly three quarters of those surveyed said they had revised their expenditure for the better over the last 12 months amid the recent economic downturn.

The findings showed that millions of Brits are cutting corners financially by refusing to tip restaurant staff, only heating one room and sneaking drinks into pubs.

Other interesting findings included:

  • One in 10 admit to returning clothes they have already worn
  • 17% have refused to contribute to a colleague's birthday fund
  • Over a quarter drive slowly in an effort to save on petrol

Unsurprisingly, 56% of those polled said they get a 'buzz' when finding a good 'money off' deal, while a third of adults have set up a direct debit to ensure they put something aside every month.

Find a decent savings return

Yet with rock-bottom savings rates, savers are finding it increasingly difficult to earn a decent return on investments.

This week, Moneyfacts.co.uk research revealed that there is only one savings account, out of 804 ISA and non-ISA accounts, that beats tax and inflation for a basic rate taxpayer.

That account is Skipton Building Society's Limited Edition Fixed Rate Branch Bond. This seven-year fixed rate savings account pays 3.50% annually.

But consumers could also consider switching to a bank account that offers competitive interest on their in-credit balances.

Currently, Nationwide Building Society is paying 5% interest on balances up to £2,500 with its FlexDirect – Funded bank account. Customers will need to pay in a regular income of at least £1,000 to be paid this rate.

While for those with higher incomes, Santander's 123 Current Account pays 3% interest on balances between £3,000 and £20,000.

For those looking for an instant cash hit, first direct is offering £125 to customers who switch to its 1st Account by 20 October 2013.

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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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