‘Have it now’ Brits opt for easy access

The rise of the ‘have-it-now’ culture is impacting on the way we save according to the latest research from Birmingham Midshires’ Saving Britain campaign. More than half of all British savers (51%) opened an instant access savings account in the past three months, whilst fewer than one in five (16%) are willing to lock their money away.

The findings follow last week’s report from the Office of National Statistics that found consumption of goods by UK households increased by 73% in 1991 and 2005. The new Saving Britain figures suggest that many of Briton’s 37 million regular savers are in fact saving to spend, contributing heavily to these consumption figures. The BM report found that women were more likely than men to demand easy access to their money; 56 per cent opened an instant access savings account compared to 46 per cent of men.

Over the first quarter of the year men were twice as likely to take advantage of the tax benefits of an ISA; these accounted for a third of new accounts opened by men compared to just 16% of women. Men were almost three times as likely as women to invest their savings in fixed rate bonds, ensuring they get a guaranteed rate of interest for a pre-determined amount of time (17% compared to 6% of women).

Jason Robinson, director of savings operations for Birmingham Midshires commented on the findings: “Instant access accounts are an excellent way of saving for short term needs however we would encourage savers to also remember the long term and make adequate provisions. It is worth considering a number of savings ‘pots’ for different purposes which can nowadays be very easily managed online.’

Birmingham Midshires asked 2,000 people across the UK whether they had opened a new account over the last three months and the type of account they opted for.

More than eight in ten (82%) savings accounts opened over the past three months had Internet access, supporting claims that Britons are increasingly looking to manage their finances online. Telephone based accounts proved popular with almost a third of Britons (31%), particularly women (34% compared to 24% of men).

Other key findings:

Savers aged between 35 and 44 were most likely to open an instant access account (66%), compared to just 42% of those aged 25-34.

Those aged over 55 were most likely to open a fixed rate bond (16%) whilst those aged 45-54 were least likely (3%).

Savers aged between 45 and 54 were most likely of all ages to put their savings into an ISA (48%) whilst the over 55s were least likely (8%).

Of those aged 25 to 34, 90% chose accounts with online banking facilities, whilst those aged 18-34 are most likely to want telephone access to their savings (30%).

Half of all Scots opted for a fixed rate savings product (50%) whilst those in the North were least likely to choose this type of account (6%).

Londoners were most likely to choose an account that allows for instant access; two thirds (66%) opened an Instant access account in the last three months, compared to just one in ten Scots.