Latest results from the Saving Britain research
13 July 2010
The latest quarterly Birmingham Midshires' Saving Britain research suggests Brits are increasingly raiding their savings. Two in five British adults (38%) dipping into their savings during the three months to July 2010. The average amount taken from their savings has increased to £1,870 from £1,499. However, this is far short of the all time high in July 2009 of £2,191.
In the three months to July 2010, Britons saved an average of £764, compared with £1,031 during the last quarter. This is over a quarter (26%) less that the previous quarter.
John Bianco, Head of Birmingham Midshires Savings Products said: "Despite this increase in the last quarter, this falls far short of the all time raiding high this time last year of over £2,000. In addition, those who are raiding their savings are doing so for essential reasons such as emergency repairs and increased utility bills rather than spending on luxury items."
Regional raiders:
- Those over 55 top the raiding chart, withdrawing £2,284 in the last quarter. A quarter (25%) of over 55s admit to raiding for emergency home or car repairs
- Emergency home or car repairs (25%) and paying for a holiday (19%) remain the top reasons with a third of Welsh savers raiding to pay for a holiday, and 34% of those in the Midlands raiding for emergency home and car repairs
- Over two fifths (44%) of savers in the Midlands admit to raiding their savings pots by an average of £1,871 in the last quarter. This compares to the £1,113 in the previous quarter
Shift in savings:
- Savers in the North have increased their savings to £801 compared to £745 in the previous quarter
- Saving pots in the South are the leanest with £784 being saved compared to £1,493 in the last quarter
- Surprisingly, a quarter (25%) of savers in the East 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
Reasons for saving
Reason for savings |
% of population (in three months to July 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 |
12 |
11 |
1 |
A holiday |
26 |
27 |
-1 |
A new outfit |
1 |
1 |
0 |
A party |
1 |
1 |
0 |
Television |
2 |
2 |
0 |
New baby |
2 |
2 |
0 |
Children's education |
4 |
5 |
-1 |
Rainy day |
25 |
26 |
-1 |
Retirement |
16 |
16 |
0 |
Holiday home |
1 |
1 |
1 |
Christmas |
6 |
5 |
1 |
Amount Britons saved each quarter over the last two years
| |
Jul-08 |
Oct-08 |
Jan-09 |
Apr-09 |
Jul-09 |
Oct-09* |
Jan-10 |
Apr-10 |
Jul-10 |
Amount saved in the last three months (average of all British adults) |
£516 |
£339 |
£329 |
£597 |
£849 |
- |
£776 |
£1,031 |
£764 |
* Data not available
Reasons for raiding savings
Reason for raiding savings |
% of population (in three months to July 2010) |
% of population (in three months to April 2010) |
% change |
Impulse gifts or luxury shopping |
5 |
8 |
-3 |
Holiday or weekend break |
19 |
15 |
4 |
Unexpected bills (council tax/ insurance premiums/ TV license) |
8 |
12 |
-4 |
Entertainment (e.g. dining out) |
7 |
7 |
0 |
Overspending on current account |
15 |
15 |
0 |
Unexpected utility bills |
10 |
12 |
-2 |
Higher than expected credit card bill |
9 |
7 |
2 |
Emergency home or car repairs |
25 |
22 |
2 |
Lent money to friends or family |
12 |
10 |
2 |
Loss of job or income |
7 |
10 |
-3 |
Amount raided from Britons’ savings accounts each quarter over the last two years
| |
Jul-08 |
Oct-08 |
Jan-09 |
Apr-09 |
Jul-09 |
Oct-09* |
Jan-10 |
Apr-10 |
Jul-10 |
Amount raided in the last three months (average of all British adults) |
£434 |
£343 |
£302 |
£367 |
£2191 |
- |
£1,724 |
£1,499 |
£1,870 |
* Data not available
Serving UK savers for 160 years, Birmingham Midshires (BM Savings) continues to offer consistently competitive rates on savings, through a range of award winning 'best buy' products including easy access accounts, fixed rate bonds and ISAs. 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 further information please contact:
Deepa Bose
Telephone 020 7356 1405
Email: deepa.bose@lloydstsb.co.uk
Claire Miller
Telephone: 01422 332 833
Email: clairemiller@halifax.co.uk
Gillian Slater
Telephone: 020 7356 2305
Email: Gillian.slater@lloydstsb.co.uk
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