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Britons stepping up to the savings plate

Britons stepping up to the savings plate

Category: Savings

Updated: 12/10/2011
First Published: 12/10/2011

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 It is now over 6 months old so the content may be out of date.

Britons are stepping up the amount they save as the need to have at least a little something stashed away becomes ever more apparent.

Savers are putting away around 12% more money than a year ago, according to Santander, with the average deposit into a savings account now standing at £114 per month.

At the same time, the total number of people who do not have any savings has dropped by a third, so that just one person in five has no financial safety net to fall back on.

Despite the growing appetite for saving, further progress appears to have been stunted by the current low level of interest rates.

Indeed, one in 10 people admitted that they will wait for the Bank of England to raise interest rates before they consider saving more or saving at all.

Meanwhile, over a quarter of those surveyed expressed concern over the impact that inflation will have on the purchasing power of their savings.

But despite the nagging concerns at the back of some people's minds, the newfound appetite to save currently shows few signs of slowing, with a quarter of those questioned intending to increase the size of their monthly deposits over the coming months.

"The importance of having cash saved for a rainy day has never been more real and as a result, many people are taking a long hard look at their finances and identifying ways to start saving more," said Matt Hall, head of savings.

"Our outlook for savings over the next 12 months is one of cautious optimism; people are still feeling the pinch as the cost of living continues to rise, but the positive results show that people are still dedicated to saving."

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