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Three quarters of Brits saved in 2016 despite rock bottom rates

Joanna Faith
Written By:
Joanna Faith

Despite 2016 being a challenging year for savers, almost three quarters of UK adults – the equivalent of 37 million people – managed to add to their nest egg in the last 12 months, research reveals.

Banks have relentlessly slashed rates this year, with the average easy access cash account now paying just 0.35%.

But this doesn’t seem to have deterred Brits from saving, according to a survey of 2,000 people by Charter Savings Bank.

It found over a third of people have made regular monthly deposits through 2016 and one in four have made occasional deposits. Five per cent deposited a lump sum every two months.

The findings suggest 44% of Brits started 2016 with a set savings target in mind, but only a quarter were able to reach their goal with unavoidable extra expenses, the low interest rate environment and not being committed enough to saving hindering many savers’ efforts.

Paul Whitlock, director of savings at Charter Savings Bank, said: “Despite a tough year of economic uncertainty, our research confirms that saving is a habit for nearly 37 million people in the UK.

“It’s great to see people are continuing to see the value of savings and contributing to their nest eggs, irrespective of what the prevailing economic environment throws at them.”

With inflation estimated to rise above 2% in 2017, Whitlock said savers will see their nest eggs eroded further so shopping around for the best savings products will be “vitally important”.