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Do you ransack your savings?

Do you ransack your savings?

Category: Savings

Updated: 12/02/2016
First Published: 12/02/2016

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 It is now over 6 months old so the content may be out of date.

We all know the importance of saving, but we've also all probably had to raid our piggy banks every now and then in order to cover some immediate expenses, and this could mean that our savings accounts end up being rather depleted by the end of the year.

Saving for a rainy day

According to research carried out by VoucherCodes.co.uk, the average saver will manage to squirrel away around £2,000 a year – a tidy sum to be sure. However, rainy day expenses can drain these precious money stores, with around 15% of this saved money being withdrawn over the course of the year. This equates to around £312 per saver over 12 months, which is quite a significant sum to lose from your precious savings pot.

About 75% of those questioned in the research said that they managed to put savings into their account every month, with men in particular being keen savers: on average, men put away £212 a month, while women mustered up around £133. However, 48% of those asked admitted that they often delved into their pots every month as well, thereby partially reversing all their hard work. Women were found to be guiltier of this than their male counterparts, with 50% of women saying that they raided their savings compared with 45% of men. Regionally, Londoners were found to save the most, and be the best budgeters – savers in this area removed just 11% of saved funds, compared with 31% of money saved in Wales.

"It can be very tempting to delve in and take money out of our savings to pad out disposable income each month, especially if a big expense comes along that we weren't expecting or we're invited to do something we just can't say no to," commented Claire Davenport ofVoucherCodes.co.uk. However, regularly dipping into our savings can undo all our hard work, so why not take steps to keep your savings intact?

Stop the raids

The first step is to come up with a realistic budget that details how much you can comfortably save without having to back-pedal and make withdrawals later in the year. You can also try and plan ahead for big expenses – if a birthday is coming up, or your car is on its last legs, there's not much point tying up more money in a savings account. Of course, there will be some emergencies that you just can't plan for, which is why having an easy access account without tight withdrawal restrictions is a great idea. This way, if you do have to access savings, you don't have to lose any interest gains due to an early access penalty.

You can also keep more money in your pocket and your savings account by making the most of any vouchers or discounts you find – check out our voucher corner for the latest deals and see if you can shave a little of the cost off some of your purchases.

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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