Number of Brits not saving money rises

The average saver has increased the amount they put away each month by over a quarter (26 per cent) since the beginning of 2009 but the number of Britons who aren't saving anything has also risen, new ‘Snapshot' research from Abbey Savings has revealed.

Savers are now putting away £206 each month on average, compared with £163 at the beginning of the year, meaning that British savers are on course to bank around £59.5 billion this year based on average savings rates.

However, the effects of the recession are still being felt by many, with the research showing a six per cent fall in the overall number of people saving since the start of the year. Four out of 10 Britons still save nothing at all, while 26 per cent of those who are saving claim to be saving less now than they were last year - an increase of six per cent since May 2009, perhaps driven by rising unemployment.

Abbey's Snapshot also found:

65 per cent of savers have an instant access savings account
42 per cent currently hold a Cash ISA
A fifth have a regular savings account
14 per cent hold a Stocks and Shares ISA
Nearly one in 10 (nine per cent) have savings bonds

Reza Attar-Zadeh, Director of Savings & Investments, comments: "At a time when it's never been more important to put money away for a rainy day, it's encouraging that the amount being set aside by savers each month has risen by more than a quarter. And it's not too late for those Britons who haven't yet kick started their savings habit to make a start - putting aside even a small amount each month will quickly add up to help provide them with a safety net in today's difficult economic climate. Opening a cash ISA offers savers one way of achieving this through a tax-free rate of interest to help make their money go further."