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We’re saving more…and banking online

We’re saving more…and banking online

Category: Savings

Updated: 21/02/2014
First Published: 20/02/2014

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 It is now over 6 months old so the content may be out of date.

Attitudes towards saving seem to be changing with people becoming increasingly more aware of the need for putting an amount away regularly.

NS&I have been looking at UK trends over the past ten years and have found that people are saving on average over 1% more of their income per month today than they were a decade ago. The average Briton is putting aside 7.76% of their wage each month, up from 6.70% ten years ago; and this currently comes to around £98.

It's encouraging that people are turning their thoughts to saving for the future but there is still some way to go to hit the peak Spring 2011, when people were putting away on average 8.31% of their income.

Emotions are changing when it comes to saving, however, with around 28% of Britons feeling more worried about putting money away today than they did ten years ago.

Just under half of those surveyed (47%) claim they have reduced spending on non-essential items and 34% say they no longer make impulse purchases.

Patrick Connolly of Chase de Vere, commented: "It is good news that Britons are saving more of their income. The financial crisis has helped some people to understand the importance of having money available for a rainy day. However, the increases are only marginal and as a nation we still aren't doing enough. Too many people still don't recognise the need for long-term savings, naively believing the state or their employer will look after them in retirement, while others are simply unable to save more as their household budgets have been squeezed."

However, the future looks brighter for saving with 17% of people more likely to save over the next three months.

The way people handle their finances is also changing as people increasingly turn to the internet, as new technology such as tablets and phone apps help people take control. Hectic lifestyles not allowing time to visit a branch and the ease of having 24 hour banking at your fingertips wherever you are draws people to online banking.

In fact, just under three quarters (72%) of those surveyed who used to go into a branch now bank online. Time saving was the main reason cited by 65% as a reason for using the internet, with 28% saying they felt more in control and a further 20% liking the way it allows them to be organised with all their documents in one place.

Julian Hynd of NS&I, said: "The way customers use and access the internet is changing, and in turn, the way they manage their money is changing. Over the last ten years we saw a switch from customers banking at branches to going online. Over the next decade, we will see smartphone and tablets emerge as a key means for money management as customers look to take more control of their finances while on the move or at a time that is convenient to them."

What Next?

If you are one of those looking to save in the near future why not check out our best buy savings rates chart or perhaps think about a regular saver to get you in the habit of putting something away when you need it.

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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