Seasonal savings surge – but Brits can’t resist temptation to splurge

In the three months to December Britons saved almost double the amount put aside the previous quarter according to the latest findings from Birmingham Midshires’ Saving Britain campaign.

The study has found that Brits saved an average of £813 in the final three months of 2006, a 97 per cent increase on the previous three months (£413 in Q3 2006).

Rather than saving little and often during the year to fund Christmas presents, Britons saved for their festive gifts in the last three months of the year, stashing away the highest amount of savings in the history of the Saving Britain campaign. However, despite this upward trend in saving, Britons still raided almost twice the amount they saved over the same period: £1,552.

During the whole of 2006, the average Briton saved a total of £2,246 – yet they raided more than half of this in the final few months of the year. The number one reason for raiding in the final few months of the year was to buy gifts, luxuries and for impulse purchase (31%).

Jason Robinson, director of savings operations for Birmingham Midshires commented on the findings: “It is encouraging to see that levels of savings are increasing quarter on quarter, however it seems to be a case of one step forward and two steps back for British savers over the last few months. The research shows that the average person squirreled away a healthy £813 over this period but unfortunately took around £1,552 back out of their savings, leaving them worse off than at the beginning of October 2006.

“Our research shows that gifts and impulse purchases were the reasons for raiding our savings accounts. Whilst this is to be expected during the festive season, we would urge people to think carefully about a realistic amount they can set aside each month so they avoid regularly plundering their account. Setting aside a smaller amount of money each month and leaving it untouched is much better than saving more than what is practical and being forced to raid.”

Savings

Men are the most prudent savers, stashing away an average of £885 over the last three months compared to the £743 saved by their female counterparts.

Across the age groups 30 to 50 year olds saved by far the most: £1335, almost three times more than those under thirty (£461) and the over fifties (£546) during Q4.

In the regions, those in the Midlands and Wales saved the most between October and December, putting away a healthy £1407, whilst Northerners saved the least (£414).

Raiding

Raiding men took almost three times as much from their savings as women (£2,271 and £843 respectively) during Q4.

Those aged over 50 years took the most out of their savings (£2,171) and the under 30s took the least (£760) during Q4.

People in the Midlands and Wales raided the most from their savings (£2,697) whilst those in the North took the least (£926) during Q4.