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Savings levels fall

Savings levels fall

Category: Savings

Updated: 03/03/2010
First Published: 03/03/2010

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 It is now over 6 months old so the content may be out of date.

The amount of money the UK populace is saving is at its lowest level for over two years, according to National Savings and Investments (NS&I).

The average amount set aside is now 6.25 per cent of monthly take-home income, a figure that has fallen consistently in the last 12 months and is now at its lowest point since summer 2007 (6.22 per cent).

In monetary terms, the average amount saved monthly fell from just over £90 a year ago to just short of £82.

The fall in savings is mirrored by a contraction in average earnings levels. On average, income dropped to £1,310, from £1,384 in the last quarter of 2009.

Tim Mack, savings spokesmen for NS&I, said: "With the new financial year approaching, now is a good time for people to take a closer look at their finance and set themselves savings goals for the year ahead."

Savers in East Anglia and the West Midlands can give themselves a pat on the back, as they managed to set aside more money as a percentage of their income than other areas, at 7.77 per cent and 6.50 per cent respectively.

In Greater London, the average monthly amount set aside by residents fell below the £100 mark for the first time in almost two years. Londoners were found to be saving £99.45 per month.

The percentage of all consumers setting funds aside on a regular basis fell to 44 per cent this winter. The amount saved each month fell below £200 for the first time in over a year to £195.08.

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