Britons stick to savings
A massive 9 out of 10 British savers are keeping their money in banks and building societies, despite the recent cut in interest rates, according to research from Birmingham Midshires.
More than 1 in 10 people (11%) have opened a savings account and 6% have switched their savings to an alternative provider.
However, 13% have stopped saving during the past 3 months, and 8% of them cited market uncertainty as the reason for their decision, compared to 61% who have simply been unable to afford to put money aside.
When savers do withdraw their money, 1 in 5 have used the cash to service their debts or overpay on their mortgage and a similar number (16%) have invested in stocks and shares.
Jason Robinson, director of savings operations at Birmingham Midshires comments: “It is encouraging to see that recent market conditions have not dampened Britons’ enthusiasm for saving. Clearly the majority of people are keen to maintain their good habits and save as regularly as they can.”