We're all going on a summer savings holiday

Thursday, 17 August 2006 12:00

Britons massively stepped up the amount of money they took from their savings in the last three months, with the money mainly used to fund holidays.

Figures out today from Birmingham Midshires show that some 29 per cent of Britons raided their savings to go on holiday in the last three months.

Overall, 41 per cent of women and 39 per cent of men withdrew cash from their savings accounts in the last three months.

Over the summer the average amount Britons withdrew from their savings accounts was £390, some 46 per cent higher than three months ago.

Over-50s took six times as much money from their savings as under-30s (£657 compared to £94), with trips abroad and weekend breaks the top reason for older Britons to withdraw cash.

However, unexpected utility and household bills were another major factor with 22 per cent of over-50s using their savings for this purpose.

"We have been tracking savings habits for a number of years with our Saving Britain study and over time we've seen that the savings message is getting through," said Jason Robinson of Birmingham Midshires.

"People are clearly making the effort to save; the hard part however is leaving the funds in savings and not spending them.

"This comes from planning and commitment and we always encourage savers to try and be realistic in what they put away."

Londoners are the least likely to use some of the cash in their savings, with just 35 per cent taking money out. By comparison northerners are the most likely to use up some of their reserve funds, with 45 per cent raiding their savings.

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