Mood to save rises

Legal & General’s MoneyMood Survey shows that the mood to save was higher in April compared to the same month in 2006.

MoneyMood shows 60 per cent of adults in the UK were in the mood to save at the end of April compared to only 57 per cent for the same month in 2005. The mood to spend is the lowest April figure for three years, at 26 per cent of adults questioned.

Julia Clayworth, Wealth Management Customer Marketing Manager said: “The latest ‘MoneyMood’ figures show we are still in ‘save’ mode compared to this time last year. Interestingly MoneyMood found that the percentage of households who said they have money to spend after paying bills and debt payments has fallen steadily from 61 per cent to 58 per cent over the three years. This suggests that the Bank of England base rate increases, from 4.75 per cent in 2005 to 5.25 per cent today may have had only a relatively minor impact on household finances. The majority of households (58 per cent) are still in a position to save rather than struggling to make ends meet. However, the recent rise in inflation figures mean the prospect of a base rate hike this month is much more likely than not. If rates do move closer to 6 per cent we would expect to see people’s ability to save beginning to fall away.”