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Britons save more each month than a decade ago – NS&I

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
05/12/2014

British consumers are saving a higher proportion of their monthly income than they were a decade ago, according to figures from NS&I.

Its latest Quarterly Savings Survey found savers are now setting aside 7.76% of their income or £98 a month on average, compared to 6.42% (£85) five years ago and 6.70% (£82) a decade ago.

However, while encouraging, savings levels have yet to return to the peak of 8.31% reached in Spring 2011 and the monetary figure has yet to exceed the £104 recorded in Winter 2012.

The report also found that the number of people saving for a holiday or special occasion has dropped over the years from just under half (47%) in 2007 to four in ten (40%) today.

This trend also follows for those saving money for house purchases, mortgage payments or home improvements with 41% saving for this reason in 2007, compared to just a third (33%) currently.

The ability to save for retirement has also decreased with 38% putting savings aside for this purpose in 2007, compared to 22% now.

Elsewhere, the study revealed the way people manage their finances has changed dramatically over the last 10 years.

A decade ago, three quarters (75%) of Britons managed their finances in person, by visiting a bank or building society branch. Today, this figure has dropped to 54% as online channels for money management, such as the internet, or via apps on tablets or smartphones have seen dramatic growth.

Some 72% who used to manage their finances in branch, now use the internet to do so.

Changes in the method used to manage finances

Method 10 years ago Now In five years time
On the internet 29% 74% 68%
Visiting bank/building society in branch 75% 54% 35%
Phone 20% 17% 11%
Via bank/building society Smartphone apps N/A 14% 19%
On a tablet device N/A 9% 20%

Julian Hynd, director of retail at NS&I, said: “The way customers use and access the internet is changing, and in turn, the way they manage their money is changing. Over the last ten years we saw a switch from customers banking at branches to going online.

“Over the next decade, we will see smartphone and tablets emerge as a key means for money management as customers look to take more control of their finances while on the move or at a time that is convenient to them.”