One in five Britons without any savings
11 million adults (22 per cent) in the UK have absolutely no money deposited in savings, according to new research from Santander Savings.
Over the past year, the average monthly deposit amount has also fallen 7 per cent; in 2011, Britons were depositing an average of £112 per month, a figure that has dropped to the current average of £105.
At £128 per month, male savers are depositing 54 per cent more than females, who are only setting aside an average of £83 each month. Female monthly deposits have also reduced by 8 per cent over the past 12 months, compared to a 5 per cent drop in the average deposit made by male savers over the same period.
Going forward, Britain’s saving habits look set to improve, with 23 per cent of people planning to increase the amount they set aside over the next few months, rising to 43 per cent for younger savers aged 18 – 34.
Matt Hall, Head of Savings at Santander, commented: “The fact that people are saving slightly less this year than last is in-line with expectations, as household budgets continue to tighten but living costs still edge upwards. The slight reduction in monthly deposits simply shows that people are managing their money, with a significant proportion of savers planning to increase the amount they deposit over the next few months.
“Our real concern is for people who have no money set aside in savings accounts and for those who have stopped making monthly deposits. We’d urge these people to review their spending thoroughly to identify opportunities to make even the smallest of cutbacks. It’s especially important given the current economic uncertainty that customers have some savings to protect themselves from unforeseen events.”
For those that find the prospect of saving daunting, little and often is a great way to start, with Santander offering a range of savings accounts including tax-free ISAs plus a market-leading eSaver.
Savers can opt for the two year fixed rate MAJOR ISA which pays 4.00 per cent AER tax free (fixed), plus an additional one-off bonus of 0.10 per cent tax free, paid at maturity, if Rory McIIroy wins one of the eligible golf ‘Majors’ before the ISA matures. For those looking for a shorter term, a one year Fixed Rate ISA offers a competitive 3.50 per cent AER tax free (fixed). While Santander’s Direct ISA Issue 9 offers instant access with a market-leading rate of 3.30 per cent AER tax free (variable) with a variable bonus of 2.80% for the first 12 months. It can be accessed via cash card, telephone and internet banking.
Savers can deposit their current tax year cash ISA allowance as well as transfer in previous years’ cash ISA savings, making the accounts attractive for both new and existing ISA savers.
If they have already used their full ISA allowance, savers can still make their cash work harder via Santander’s eSaver Issue 5 which offers a market leading 3.20 per cent gross/AER. Savers can deposit from just £1 and benefit from easy access without notice or penalty.