Zero savings and cutting back becoming the norm - Savings - News - Moneyfacts


Zero savings and cutting back becoming the norm

Zero savings and cutting back becoming the norm

Category: Savings

Updated: 04/10/2011
First Published: 04/10/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A lack of savings and cutting back are becoming the norm for millions of Britons, worrying new figures have found.

Research from Norwich & Peterborough Building Society (N&P) has found that half of UK households have less than £1,000 saved.

It paints a worrying picture of people living paycheque to paycheque with very little money set aside for emergencies, long term sickness or unemployment.

In fact, a third of Britons have no savings behind them at all and in many areas, half of people have less than £1,000 put away in savings.

Many people are approaching retirement with no accessible savings, with a quarter of people aged 55 or more not in the position to get their hands on their funds.

Gary Lacey, the savings product manager at N&P, said that a common philosophy is to have a couple of months' worth of savings stashed in an accessible savings account.

Cardiff is the city with the highest proportion of people with no accessible savings whatsoever, with almost half (46%) having none, and almost six in ten (58%) with none or less than £1,000 available.

By contrast, Edinburgh is the city with the highest number of people with savings.

Only 16% of those in Edinburgh have no savings, which is half the UK average, while seven in ten people in Edinburgh have more than £1,000 in accessible savings.

"Those with no savings at all are living on a tightrope," warned Michelle Slade, spokesperson for

"All it takes is for an unexpected expense and your finances could be turned upside down, especially if you end up going into an unauthorised overdraft or have to add the expense to an already heavy credit card bill.

"Saving a few pounds every month might seem futile, but it soon adds up and could give you an important safety net should you need a bit of money quickly."

If you'd like to give your savings a kick-start, check the Best Buy tables where you can open accounts from just £1.

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.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

Average five-year fixed bond rate falls below 2%

Long-term fixed rate bonds used to be the top solution for savers looking to get a decent return on their savings, but unfortunately, times have changed, with our latest data revealing that the average five-year rate has fallen to a new record low.

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.