Savers withdraw more

by Gill Montia

Story link: Savers withdraw more

Birmingham Midshires (BM), part of the HBOS group, has published the results of a recent survey which shows an increase in the amount of money being withdrawn from savings accounts, and used to top up current accounts.

BM’s latest Saving Britain report, which examines the nation’s savings habits, shows that in the last quarter, the extent to which people dipped into their savings increased by 14%, compared with the previous three-month period.

The average amount withdrawn to offset the effects of interest rate rises and other financial pressures was £400.

Whilst the value of the savings used increased during the quarter, the number of people needing to use their savings actually fell.

Londoners were the most likely to dip into their accounts, withdrawing £716 on average, while those in the north of the country took out an average of £242.

According to the survey, the 25 to 34 age group tended to use savings to offset overspending from another account.

For respondents aged between 35 and 44, 17% had used savings to pay bills, while 45 to 54-year-olds were more likely to be spending their savings on a holiday.

Those aged over 55 made the largest withdrawals from savings accounts, at £682 on average.

Nearly one-quarter of over 55s surveyed used the money for a holiday and a further 23% had to use it for emergency home or car repairs.