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Women are better savers than men
Women are more committed to saving money than men and squirrel away more, despite earning less.
According to the latest Halifax Savings Barometer, female savers have an average balance equivalent to 41% of their average annual gross earnings, whereas men have an average balance of just 23% of their earnings.
While women in England and Wales earn £13,500 a year less than men on average, the typical savings balance held by female customers is now £8,211 compared to £7,699 held by men.
Richard Fearon, head of Halifax Savings, said: “In recent years, people have become more aware of the need to put money aside in order to build a financial savings ‘cushion’. Whether this is for a major event such as retirement or a wedding, or just for a rainy day it is important to save regularly where possible.
“However, while – on average – women earn significantly less than men the Halifax Savings Barometer shows not only are women outsaving men relative to their annual earnings, but they also have more savings in total.”
The largest average balances are held by savers in the South East (£9,316) and East Anglia (£9,283). Whereas the lowest average savings are in the North (£7,408); a fifth lower (20%) than in the South East
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Savers are being urged to shop around and find the best savings vehicle for their pots. Fearson advises using tax efficient savings vehicles such as ISAs to help Brits make their money work as hard as possible.
He added: “By protecting your savings from tax it means you will receive greater returns. The current cash ISA limit is £5,640 and the overall annual ISA limit is £11,280.
“However, people need to be aware the deadline to use their 2012/2013 ISA allowance is approaching and ends on 5 April 2013.”