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

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

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 It is now over 6 months old so the content may be out of date.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

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.
 
Close