Britons stick to savings habit

Almost nine in ten British savers continue to take advantage of favourable interest rates and keep their money in banks and building societies, new research reveals.

Birmingham Midshires’ quarterly Saving Britain report has found that 87 per cent of the 2,000 people it surveyed said they had continued to save as normal during the past three months. More than one in ten people (11%) have opened a savings account and six per cent have switched their savings to an alternative provider.

Cashflow not confidence causes pause in deposits

Of the one in ten (13%) who have stopped saving during the past three months, just eight per cent cited market uncertainty as the reason for their decision, compared to 61 per cent who have simply been unable to afford to put money aside.

Funds redeployed in ‘the system’

The money that has been withdrawn from savings accounts has not been stashed under the bed, nor have Brits blown their ‘nest egg’ on treats for themselves. One in five (17%) have used the cash to service their debts or overpay on their mortgage and a similar number (16%) have invested in stocks and shares.

Switching providers

Savvy savers are closely monitoring the rate that their providers are offering. Of the people who switched their savings account to a different provider in the past three months, 68 per cent stated that they did so because they could get a better rate elsewhere. Just one in ten account switches were due to savers feeling they had received poor service.

Jason Robinson, director of savings operations at Birmingham Midshires comments: “It is encouraging to see that recent market conditions have not dampened Brits’ enthusiasm for saving. Clearly the majority of people are keen to maintain their good habits and save as regularly as they can.”