Brits pile on the saving pounds
20 April 2010
New research reveals Brits build up their savings pots and trim down their raiding
New research from Birmingham Midshires' Saving Britain campaign reveals Brits have almost doubled the amount they are saving on a quarterly basis compared to this time last year. This is the second quarterly rise in a row.
In the three months to April 2010, Britons saved an average of £1,031, compared with £554 this time last year and £776 during the three months to January 2010. Two in five British adults (39%) admit to raiding their savings during the same period although the average raiding amount has reduced to £1,499 from £1,724.
Commenting on the latest findings, John Bianco, Senior Manager, BM Savings said: "It is reassuring to see that people have increased the amount they save for the second quarter in a row, as good saving habits are important to ensure you can plan ahead financially."
Regional raiding:
- Savers in London admit to having raided their savings accounts by an average of £2,171 in the last quarter. This compares to the lowest average savings raid of £1,004 in the East.
- Almost a quarter (22%) of respondents raided their savings to pay for emergency home or car repairs whilst a sixth (15%) used their savings to pay for a holiday.
- Savers over 55 years admitted to raiding on average £2,224 in the last quarter with 15% of them using their savings to pay for a holiday or weekend break. This compared to 18 to 24 year olds raiding on average £446 in the same period with 32% of them using their savings to pay for entertainment.
Smart savers:
- Savers in the South have set aside the most in the past three months (£1,493) compared to £704 for those in the Wales.
- The percentage of people saving for a rainy day has remained steady at 26%.
- Surprisingly, over a third (34%) of savers in Scotland 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.
- A third (33%) of 45-54 year olds are saving for a holiday compared with 30% of 18 to 24 year olds who are saving for a deposit in on house.
Reasons for saving
Reason for saving |
% of population (in three months to January 2010) |
% of population (in three months to April 2010) |
% change |
Deposit for a house |
10 |
9 |
-1 |
Wedding |
5 |
4 |
-1 |
Car |
8 |
9 |
+1 |
Other |
10 |
11 |
+1 |
A holiday |
25 |
27 |
+2 |
A new outfit |
1 |
1 |
0 |
A party |
1 |
1 |
0 |
Television |
2 |
2 |
0 |
New baby |
2 |
2 |
0 |
Children's education |
3 |
5 |
+2 |
Rainy day |
27 |
26 |
+1 |
Retirement |
14 |
16 |
+2 |
Holiday home |
1 |
1 |
0 |
Christmas |
6 |
5 |
-1 |
Amount Britons saved each quarter over the last two years
|
Apr
-08 |
Jul
-08 |
Oct
-08 |
Jan
-09 |
Apr
-09 |
Jul
-09 |
Jan
-10 |
Apr
-10 |
Amount saved in the last three months (average of all British adults) |
£554 |
£516 |
£339 |
£329 |
£597 |
£849 |
£776 |
£1,031 |
* Data from October 2009 is not available
Reasons for raiding savings
Reason for raiding savings |
% of population (in three months to January 2010) |
% of population (in three months to April 2010) |
% change |
Impulse gifts or luxury shopping |
9 |
8 |
-1 |
Holiday or weekend break |
16 |
15 |
-2 |
Unexpected bills (council tax/ insurance premiums/ TV license) |
11 |
12 |
+1 |
Entertainment (e.g. dining out) |
8 |
7 |
-1 |
Overspending on current account |
17 |
15 |
-2 |
Unexpected utility bills |
8 |
12 |
+4 |
Higher than expected credit card bill |
9 |
7 |
-2 |
Emergency home or car repairs |
23 |
22 |
-1 |
Lent money to friends or family |
10 |
10 |
0 |
Loss of job or income |
5 |
10 |
+5 |
Amount raided from Britons’ savings accounts each quarter over the last two years
|
Apr
-08 |
Jul
-08 |
Oct
-08 |
Jan
-09 |
Apr
-09 |
Jul
-09 |
Jan
-10 |
Apr
-10 |
Amount raided from savings in the last three months (average of all British adults) |
£578 |
£434 |
£343 |
£302 |
£367 |
£2191 |
£1724 |
£1,499 |
* Data from October 2009 is not available
Notes to editors
Birmingham Midshires’ Saving Britain campaign has asked a GB representative sample of more than 2,000 adults about their saving habits over the last three months since January 2006.
The latest research was undertaken in March 2010 by YouGov amongst a GB representative sample of 2,112 adults. Birmingham Midshires asked people throughout Britain how much, if at all, they have saved and raided over the past three months and the reasons why.
Serving UK savers for 160 years, Birmingham Midshires (BM) continues to offer consistently competitive rates on savings, through a range of award winning 'best buy' products including instant access accounts, fixed rate bonds and guaranteed equity bonds. As part of BM's commitment to understand the needs of British savers, BM's Saving Britain campaign has been tracking Britons' saving habits since 2002. The research provides quarterly trend data on the amount Britons are raiding and saving from their savings, as well as detailed market insights.
For more information please contact:
Claire Miller - 01422 332833
Deepa Bose - 0207 356 1405
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