You are here: Home - Saving & Banking - News -

Hardy savers defy credit crunch

0
Written by:
12/12/2008

Almost half of the population have managed to continue to set money aside on a regular basis, a figure that has remained constant for the last three quarters, according to National Savings and Investments (NS&I).

Despite the expectation that savings levels might drop this autumn, the British population managed to maintain the amount of money set aside with saving levels averaging 6.4% of income in both summer and autumn 2008.

The population’s longer term savings behaviour seems to be more of a concern, as the average amount saved as a percentage of income has declined. The amount saved as a percentage of income has fallen every autumn since 2005 (7.16%) to its lowest autumn figure (6.4%) since the quarterly savings survey began – in contrast, income levels have steadily increased.

The survey suggests that this decline may continue; 45% of the population think that they are less likely to set money aside in the coming three months, compared to 33% this time last year. Still, over the next year a quarter of people say they are more likely to save money.

Regular savers remain committed, however, increasing the amount that they put away. This quarter it is more than 17% higher than autumn 2004 (£191.50 from £163.40), almost double the percentage increase in average income, 8.9%. While this is positive, it is a concern that the amount in pounds set aside by regular savers dipped from summer (£193.07) to autumn 2008 (£191.50).

Dax Harkins, senior savings strategist from NS&I, said: “It is encouraging that in these uncertain times the population has managed to keep steady the percentage of income it set aside earlier in the year. However, the downward trend in savings over time is worrying as more than a third of savers currently do not have enough in savings to cover an emergency. It is now more important than ever both to take control of spending and to have an emergency fund set aside.”

Related Posts

Tagged:

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Kids use parents’ details to steal £191m a year

A fifth of children are going behind their parents’ backs and shopping online without parental permission, according to CPP.

Close