Britons batten-down savings accounts

by Gill Montia

Story link: Britons batten-down savings accounts

Britons are heeding warnings of a sharp economic slowdown and attempting to keep their savings in tact, according to recent research from Birmingham Midshires.

The buy-to-let lender’s Saving Britain report shows that while the amount squirreled away by consumers each month has fallen, the average amount withdrawn from savings accounts across the nation has also decreased.

Over the three months to the end of October, Britons drew out an average £343 compared to £434 for the previous three months.

The £90 decrease is impressive, given that inflation and unemployment have been rising.

Many of those who admitted to raiding their savings did so to pay for emergency home or car repairs (26%) or to top up their current accounts (19%).

Sadly, double the number of people needed to turn to their savings because they were unemployed, than in the previous three months, and 23% more consumers raided their nest-eggs to cover energy bills.

Birmingham Midshires’ director of savings and investments, Tim Hague, believes Britons are taking a responsible attitude to saving in a difficult market climate.

He goes on to warn that making deposits where possible and having existing savings remain critical in the months ahead.

The average amount saved during the three months to the end of October was actually down 34% to £339.