Brits stock up their savings Pots
01 July 2009
New research from Birmingham Midshires' Saving Britain campaign suggests Brits have increased the amount they are saving on a quarterly basis by almost a third (30%). This is the second quarterly rise in a row.
In the three months to July 2009, Britons saved an average of £849, compared with £597 during the three months to April 2009. However, two in five British adults (40%) admit to raiding their savings during the same period with the average raiding amount increasing to £2,191.
Commenting on the latest findings, John Bianco, Head of Birmingham Midshires Savings Products said:
"As we head into holiday season it is unsurprising that a quarter of those raiding their account are doing so for this reason. However, it is still reassuring to see that people have increased the amount they save for the second quarter in a row, as good savings habits are important to ensure you can plan ahead financially."
Regional raiders:
- Londoners admit to having raided their savings accounts by an average of £4,157 in the last quarter. This compares to the lowest average savings raid of £1,113 in the Midlands.
- One in four (25%) of respondents raided their savings to pay for a holiday whilst almost a fifth (19%) used their savings to pay for emergency home or car repairs.
- Almost a quarter of Londoners (23%) raided their savings to lend money to friends or family whilst a 23% of Welsh savers used the money to cover overspending on their current account. A fifth (20%) of savers in both London and Wales used their savings to pay for unexpected bills.
Situational savers:
- Welsh savers have set aside the most in the past three months (£1,557) compared to just £592 for Southern savers.
- Surprisingly, almost a quarter (24%) of savers in London and the South do not know how much money they have saved in the last three months, suggesting they do not keep a track of their spending and savings habits.
- Nearly a third (32%) of savers in the North are putting their pennies away for a holiday whilst one in ten savers (10%) in Wales and the North are planning ahead and setting money aside for Christmas.
Reasons for saving
Reason for savings |
% of population (in three months to April 2009) |
% of population (in three months to July 2009) |
% change |
Deposit for a house |
9 |
11 |
+2 |
Wedding |
4 |
4 |
0 |
Car |
5 |
8 |
+3 |
Other |
10 |
9 |
-1 |
A holiday |
27 |
25 |
-2 |
A new outfit |
1 |
1 |
0 |
A party |
1 |
0 |
-1 |
Television |
1 |
2 |
+2 |
New baby |
1 |
3 |
+2 |
Children's education |
3 |
4 |
+1 |
Rainy day |
25 |
18 |
-7 |
Retirement |
16 |
16 |
0 |
Holiday home |
1 |
1 |
0 |
Christmas |
5 |
6 |
+1 |
Amount Britons saved each quarter over the last two years
Amount Britons saved each quarter over the last two years
|
Apr - 07* |
Jul - 07 |
Oct - 07* |
Jan - 08 |
Apr - 08 |
Jul - 08 |
Oct - 08 |
Jan - 09 |
April - 09 |
July - 09 |
* Data not available |
Amount saved in the last three months (average of all British adults) |
- |
£565 |
- |
£644 |
£554 |
£516 |
£339 |
£329 |
£597 |
£849 |
Reasons for raiding savings
Reason for raiding savings |
% of population (in three months to April 2009) |
% of population (in three months to July 2009) |
% change |
Impulse gifts or luxury shopping |
6 |
4 |
-2 |
Holiday or weekend break |
16 |
25 |
+9 |
Unexpected bills (council tax/ insurance premiums/ TV license) |
14 |
9 |
-5 |
Entertainment (e.g. dining out) |
5 |
5 |
0 |
Overspending on current account |
14 |
16 |
-2 |
Unexpected utility bills |
14 |
11 |
-3 |
Higher than expected credit card bill |
8 |
10 |
+2 |
Emergency home or car repairs |
23 |
19 |
-4 |
Lent money to friends or family |
10 |
12 |
+2 |
Loss of job or income |
6 |
8 |
+2 |
Amount raided from Britons' savings accounts each quarter over the last two years
Amount raided from Britons' savings accounts each quarter over the last two years
|
Apr - 07* |
Jul - 07 |
Oct - 07* |
Jan - 08 |
Apr - 08 |
Jul - 08 |
Oct - 08 |
Jan - 09 |
April - 09 |
July - 09 |
* This research was not conducted in April '07 or October '07. |
Amount raided from savings in the last three months (average of all British adults) |
- |
£405 |
- |
£506 |
£578 |
£434 |
£343 |
£302 |
£367 |
£2191 |
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