You are here: Home - Investing -

Baffled Brits lose out on millions of pounds of interest

0
Written by:
01/06/2012
The amount Brits are saving this financial year is set to increase by an average of £2,000 according to new research, yet the population is missing out on millions of pounds of interest by stashing savings in current accounts and even piggy banks.

The amount Brits are saving this financial year is set to increase by an average of £2,000 according to new research, yet the population is missing out on millions of pounds of interest by stashing savings in current accounts and even piggy banks.

A survey by Clydesdale and Yorkshire Banks found that people are pledging to put more money away this year and will aim to save an average of £244.70 a month during the next financial year. Yet millions of Brits (20%) admit to keeping their savings in a current account earning no interest, and a third (30%) admit to having no idea what interest rate they’re receiving.

While 50% of Brits are managing their money more sensibly, keeping their savings in an ISA, almost one in ten (7%) admit that they are even secreting savings in their home or an old money box.

It seems that cautious Brits who are saving would rather put money away for a rainy day than save for a big purchase like a new car. The poll revealed the top three reasons why Brits are stashing away their cash this year. Saving for an emergency came out as the number one incentive, with holidays and having enough money for retirement being the next most popular motivators. Despite the escalating cost of university fees, only one in ten Brits are motivated to save money for their offspring, with nearly a quarter of parents (23%) having nothing saved up for their kids.

Nick Cann, CEO of the Institute of Financial Planning (IFP), commented on the new research, saying: “Clydesdale and Yorkshire Banks’ poll revealed that the majority of people are keen to save even more this year and it’s encouraging that people are putting money away and preparing for the future.

“However, around 15% of people have less than £500 in savings and many others are not making their money work well for them, keeping savings in their current account or even in their home. We would always encourage people to seek advice on managing their money and look at ways of making their money work harder in a savings account or high interest Isa to suit their needs.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week