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Saver’s outlook brightens

Saver’s outlook brightens

Category: Savings

Updated: 18/05/2009
First Published: 18/05/2009

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 It is now over 6 months old so the content may be out of date.

There was a small improvement in the mood of savers in April, as the gloom surrounding the economy began to brighten.

Nationwide's Savings Index rose by two points last month to 75 but still remained 25 points below its start point in June 2008.

It is thought the slight increase may have been a reaction to the no-change decision in April's Monetary Policy Committee's meeting, as savers will have seen their interest rates remain stable.

The index also revealed an insight into the attitudes of UK consumers when it comes to saving their hard earned funds. Just 56 per cent of people believe that saving money is important, while less than half (47 per cent) save regularly.

Alarmingly, a quarter of the UK public saves nothing whatsoever. The value of saving was called into question as only 16 per cent thought it was a good time to save, while 56 per cent said that Government policy acted as a savings deterrent.

"Despite the modest improvement, the savings environment is still perceived as unfavourable by consumers," said Lee Raybould, the building society's head of savings.

"The large share of respondents saying that government policy discourages them from saving may reflect disappointment with the very low level of interest rates currently prevailing."

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