More than half of bonus recipients resist the urge to splurge

Annual bonuses are providing a boost to British savings accounts according to the latest research from Birmingham Midshires. Almost four in ten (39%) bonus recipients saved all or most of their annual bonus over the last 12 months, whilst an additional nine per cent used their payout to reduce their mortgage. The study also found that six per cent ploughed the money into other types of investments.

British workers collectively took home over £24 billion in bonuses over the past 12 months, with the average bonus amounting to £1758. Whilst the majority of Britons conscientiously saved their payout, a significant number were unable to resist the urge to splurge. Twelve per cent of bonus recipients rewarded themselves with a holiday and a further 11 per cent indulged in electrical luxuries such as i-pods and plasma TVs.

Those in the Midlands and Wales were most likely to save, invest or pay money off their mortgage (64%). The study found that almost half of Londoners (45%) saved their bonus whilst a further ten per cent splurged on a luxury holiday. Despite the high cost of property in the Capital, only eight per cent used their bonus to pay a lump sum off their mortgage.

In the run-up to bonus season in the City, Birmingham Midshires asked 2,000 people across the UK whether they had received a bonus over the past 12 months, and if so, how much they earned and what they spent it on.

Jason Robinson, director of savings operations for Birmingham Midshires commented on the findings: “It’s easy to be tempted to splurge when we get paid a bonus so the fact that more than half are using their extra cash sensibly is great news. You don’t need a huge amount to save or invest so lucky bonus recipients should try to find a healthy balance between rewarding themselves for a year of hard work and squirreling their cash away.”

Londoners were most likely to receive a bonus (33%) whilst Scots were least likely (22%). Lucky Londoners received the highest bonus of any region (£2,770), whilst those in the North of England obtained the least (£1,068), slighltly more than the Scots who pocketed an average £1,197.

Those in the Midlands and Wales were most likely to save their bonus (50%), followed by Londoners (45%), whilst people in the North were least likely to squirrel their bonus away (28%).

Savvy Scots were more likely than any other region to invest their bonus (21%) whilst Londoners were less disposed to put their hard earned perk into investment products (9%).

More than one in ten (11%) Northerners used their bonus to pay off part of their mortgage, whilst Scots were least likely to use their money towards property (4%).

Those in the South of England were most likely to lend some or part of their bonus to friends and family, whilst Londoners were least charitable (4%).