Savings raided in the run up to Christmas

In the three months to the end of November people who raided their savings did so to the tune of an average £1186 to pay for unexpected costs and bills.

According to research from Halifax Savings, the most common reason for raiding savings was to cover emergency home or car repairs (23%) followed by holiday costs (18%) and overspending on a current accounts (16%).

The Halifax research also revealed people who had managed to save had put aside less than half the amount that was raided, saving an average of £555.

Defending Your Deposits

A quarter of those surveyed (27%) admitted they currently make no effort to stop themselves from raiding their savings, and 72% of people haven't set themselves a ‘buffer' limit that they try to keep their savings balance above.

However, there are a number of ways people try and avoid raiding their savings; the most popular being cutting back on other costs to keep raiding to a minimum (34%).

A quarter of people (25%) also hold savings accounts away from their main bank to make raiding less easy, while 14% of people use fixed term accounts to deter them from making withdrawals.

Richard Fearon, Head of Halifax Savings, says: "Raiding your savings can sometimes be inevitable, but in the run up to Christmas the data shows the average amount being raided from savings is much higher than the average amount being saved."

"Managing your savings is an important part of managing your money overall. At this time of year people often use their savings to buy gifts so taking simple steps, such as having different savings accounts for different purposes, can be an effective way to stop hard-earned savings being spent on things they aren't intended for."

Salaries Impact on Savings

The research also found while those earning more managed to save the most, savings and raidings don't necessarily correlate with income.

Savers earning £10,000 to £14,999 a year managed to save the greatest amount in relation to their income, equivalent to 2 ½ weeks wages (£773 on average) in the three months to November.

Those earning £10,000 to £14,999 also had one of the lowest rates among those raiding their savings, withdrawing the equivalent of 3 ½ weeks wages (£983.90).

The highest rate of raiding in relation to income was from those earning less than £5,000 a year, who raided over 7 weeks wages (£787.30). The lowest were those earning £30,000 - £49,000 who raided one and a half week's wages (£1,532.40).

Raiding by Region:

Outside of London, savers in Yorkshire and the Humber have the largest average savings balances (£19,233.80). However, it is Scottish savers who put the most away on average during the last three months (£967.10), and they are also the most likely to have raided their savings (51%). In monetary terms those in the South West have raided the least (£838.20), followed by savers in the North West (£842.80).