A quarter of Brits are 'aspirational' savers

M&S Bank research reveals that while nearly two thirds (64 per cent) of regular savers believe it’s important to contribute towards a ‘rainy day’ fund, a quarter (25 per cent) see themselves as ‘aspirational’ savers,  instead choosing to put their money towards a tangible savings goal.

The most popular savings goal for aspirational savers, with more than half (51 per cent) saying they were contributing towards this every month, was holidays. A new home was the second most important goal for many aspirational savers, with nearly a third (31 per cent) saying they were saving to buy a new house, while 17 per cent were saving towards home improvements.

The research revealed that four in five (80 per cent) adults hold at least one savings account and nearly half (48 per cent) of those with a savings account said they saved regularly (at least once a month). While the average savings pot stands at £10,156, with an average monthly contribution of £156, 15 per cent actually have less than £100 in their savings. 

Of those with a savings account, more than half (54 per cent) have one account, nearly a third (30 per cent) have two and nearly one in ten (nine per cent) have three; seven per cent of savers have four or more savings accounts.

Proving an increasingly popular option for savers, nearly a third (31 per cent) have a savings account linked to their current account, with more than a quarter (28 per cent) of those saying this was one of the main reasons they chose their existing current account. In addition, nearly two in five (39 per cent) believe they save more as a direct result of having a linked savings account.

Paul Stokes, Head of Products at M&S Bank, commented: “It’s great that the vast majority hold savings accounts and, more importantly, half are choosing to save regularly. Saving just a small amount each month can really go a long way, whether you’re saving for a rainy day or an aspirational target, like a holiday, new home or home improvements.

“Linked or regular savings accounts often offer more competitive rates and are a great way to help savers reach their goals; our research shows that they’re becoming even more popular with savers.”

Nearly one in five (19 per cent) pay into their savings account via a standing order each month, while the same amount (19 per cent) transfer money to their savings account each month, but with a varying amount.

Of those that don’t save regularly, half (50 per cent) say this is because they don’t have enough spare cash, a third say they don’t earn enough and 30 per cent say their outgoings vary too much. Nearly a quarter (23 per cent) of savers that don’t save regularly said they would prefer to clear debt first.

When asked if they would have enough savings to cover themselves in an emergency, nearly four in ten (37 per cent) believed they would have enough, while more than half (51 per cent) said they didn’t.

M&S Current Account customers have access to a high rate monthly savings account with a rate of six per cent AER/ gross. M&S Current Account customers can save up to £250 a month into the savings account, with the potential to earn over £97 in interest over a 12 month period.