Would your savings keep you dry? - Savings - News - Moneyfacts

News

Would your savings keep you dry?

Would your savings keep you dry?

Category: Savings

Updated: 19/11/2013
First Published: 19/11/2013

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 It is now over 6 months old so the content may be out of date.

Last week Moneyfacts reported on two surveys that revealed the poor state of the UK's savings habits. This week, further research has been released to continue the trend, with the latest Lloyds Bank Savings Index finding that 36% of respondents have less than their monthly income saved and a worrying 31% haven't been able to save at all for the past year.

The Index, based on data from a representative sample of nearly 4,000 consumers, highlighted the low level of savings that UK consumers currently hold. With over a third not having enough to last the month should they lose their income it paints a worrying picture of the nation's finances, and perhaps even more worryingly, over a quarter (27%) of consumers will need to either save less or stop saving altogether over the next 12 months.

It seems that lack of spare income is largely to blame for such poor savings figures, with 43% of those who hadn't saved in the preceding year saying it was because they had no money left by the end of the month. However, it could also be that people have become disillusioned with the savings market thanks to record low interest rates, with 39% believing it's not worth saving.

But, those who had saved aren't necessarily faring better, as over half (55%) had to dip into their savings more than once over the course of the year.

There is a glimmer of hope though, as the number of those who have been able to save remains stable from previous quarters, with 24% of respondents stating that they're able to save regularly. Attitudes towards saving remain similar too, with 88% believing it's important to have a minimum amount saved to be prepared for unexpected costs – but unfortunately just 48% of consumers think they have enough to cover those unexpected outgoings.

"Saving is a challenge, not helped by the low returns on offer, particularly on no notice accounts which are the obvious place to put any money you may need to lay your hands on in an emergency," said Sylvia Waycot, editor of Moneyfacts.co.uk.

"However, one of the key methods for maintaining your savings is really simple and often overlooked. It is simply to remember what you are saving for. If it is a holiday, a car or even a rainy day, try to include the aspiration in the title of the account so you always remember why you are saving and are less likely to impulse borrow from it," she advised.

What Next?

Find the best avaliable savings rates

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.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!
 
Close