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Savings reach record high

Savings reach record high

Category: Savings

Updated: 26/06/2009
First Published: 26/06/2009

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 It is now over 6 months old so the content may be out of date.

Regular savers have been putting away £209.23 a month over the last quarter, the largest amount recorded since the NS&I's Quarterly Savings Survey began four and a half years ago.

Meanwhile, another historic high has been reached with the news the average Briton set aside £92.41 each month in that time, up from £90.12 in the previous quarter.

Encouragingly, the increases in both measures have been recorded at a time when income levels have been dropping. The number of people saving regularly has also remained constant for the fifth quarter in a row, with nearly half (47 per cent) of the population setting some money aside each month.

The rising level of UK savings is also being driven by the high targets people are setting themselves. Ideally, savers are aiming to put some £219.11 away every month, which is over 16 per cent of their average income.

This is markedly up from the £210.26 people were looking to save in the previous quarter, and the £195.67 sum, which was the average target this time last year.

People are also overspending by less compared to winter 2008/09 and summer last year.

"Many of us are cutting back on unnecessary spending and instead are putting a priority on saving," said Dax Harkins, senior savings strategist at NS&I.

"Our survey shows people are setting themselves their highest ever savings targets. However, as we've seen previously, we are still falling a long way short of our aspirations.

"One way that people could tackle this is to identify clear goals to save for; at the moment just over a quarter (27 per cent) of those with savings set aside are saving for something specific."

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 Any products featured may be withdrawn by their provider or changed at any time.

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