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Families still saving despite low rates

Families still saving despite low rates

Category: Savings

Updated: 11/07/2013
First Published: 11/07/2013

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 It is now over 6 months old so the content may be out of date.

The savings habits of families across the country have improved over the last six months despite record-low savings rates, a new study has revealed.

Aviva's July 2013 Family Finance Report studies the financial habits of over 18,000 families across the United Kingdom.

Latest findings show that the average family now saves £96 per month, compared to £80 at the beginning of the year. Encouragingly, this is a significant increase from the low point of £19 savings per month recorded in November 2011.

The average savings pot, meanwhile, has grown by £2,118 in two years, to reach £3,281.

The research also highlights the North – South divide between the savings habits of families, with those in London managing to accumulate a savings pot of £11,499 in contrast to the North West's average of £943.

Although savings pots have been growing, typical household debt has also hit record levels, rising 21% in a year.

The average family now owes £12,834 in unsecured debt, with data showing that credit cards are still the most popular method of unsecured borrowing as 40% of families use credit cards.

"As money matters improve in one area, this is often offset in another," said Louise Colley, protection distribution director for Aviva.

"It is great to see that families are saving more than ever, but slightly concerning that debt levels are continuing to climb."

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