Average amount Brits save each month is £120

British savers are currently managing to put aside an average of £120 each month, £43 less than the average three months ago, according to research by Abbey Savings, as part of its Quarterly Savings Snapshot. This is the second of a series of profiles capturing the savings status of the nation in 2009.

However, the research also revealed many have positive ‘saving intentions' with a quarter (25%) planning on increasing the amount they save in the next 3 to 6 months and one in ten (11 per cent) have already taken these encouraging steps, by putting away more this year compared to last.

‘Snapshot' of a UK Saver - Q2 2009

The research reveals the characteristics of a typical saver:

Puts away £120 a month - £43 less than Q1 2009
Men save £155 per month - £41 less than Q1 2009
Women save £86 per month - £45 less than Q1 2009
Has an Instant Access Savings Account (62%) or cash ISA (43%)

2008 vs. 2009

The survey revealed that a fifth (21 per cent) are now saving less than they were 12 months ago with the collective average decrease a substantial £315 per month. On the other hand analysis showed that almost half of respondents (45 per cent) say that they are still saving the same amount as they were 12 months ago, with one in ten (11%) saving more, on average £207 more a month.

Reza Attar-Zadeh, Director of Savings & Investments at Abbey said: "This insight into the current state of British savings allows us to track the nations savings habits closely; we are certainly observing an overall decline which may not come a huge surprise, but it's positive to see that there are some good intentions out there."

Reza Attar-Zadeh continued "Whether savers decide to put their hard-earned money aside from the long term benefits, for a specific purpose such as a holiday or a wedding, or for emergencies, the most important thing for people to do when thinking about saving is to work out a plan of action that works for them - then choose the right accounts to suit their needs. To maximise returns, every taxpayer would do well to consider making the most of their annual tax-free ISA allowance, and a Cash ISA is a good first port of call."

Most popular savings products

The research also reveals a picture of the accounts held by UK savers:

Over half (62 per cent) hold an instant access savings account
43% say they have a Cash ISA
A fifth (20 per cent) have a regular savings account
14 per cent hold a Stocks and Shares ISA
One in 12 (8 per cent) have a ‘notice' account
8 per cent have a Child Trust Fund and 8 per cent have a Children's savings account
Just 7 per cent have savings bonds

Abbey, Bradford & Bingley and Alliance & Leicester have a range a competitive savings account to suit each and every savers needs, including our Direct ISA paying up to 3.00 per cent, our new 2 year fixed rate bond paying 4.01 per cent on a minimum of £30,000, or our popular First Home Saver, a regular savings account designed for first time buyers saving for their first home, paying 5 per cent gross AER. For more information log on or drop in to a local branch.