Britons saving more than ever

Thursday, 21 December 2006 12:00

More Brits have become savers than ever before with 58 per cent of the population now regularly saving, the latest figures in the quarterly savings survey reveal.

And Brits are also putting more cash aside than ever before, with research by National Savings and Investments (NS&I) showing a 12 per cent rise in the amount saved over the last two years, up from £81.80 per person to £91.82 per person.

However, the amount saved as a proportion of workers' incomes has stayed virtually the same since last year, going from 7.16 per cent last autumn to 7.15 per cent over the last quarter.

"The increases in interest rates seen in the last quarter are good news for savers and should make saving more attractive," commented Dax Harkins, senior savings strategist at NS&I.

"The rise in overall savings levels after August's rate rise suggests the following months may see more increases in saving, as the higher rates provide the incentive needed to get more people putting money aside."

However, NS&I is also warning the rise in interest rates is a "double edged sword" and may be the reason why monthly savings levels have dipped over the last year, with people able to put less into their savings accounts as a result of larger mortgage repayments.

Over autumn 2005 savers regularly put £174.43 away per month compared with £170.06 over this autumn.

But savings accounts are still growing.

On average a Britons have nearly £1,000 more cash put aside than they did in autumn 2005, having saved up an average of £17,909 each, up considerably from last year's figure of £16,968.

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