Up to 12 million Brits failed to save a penny in 2006

Nearly one in three of us failed to save a penny during 2006, according to research from Alliance & Leicester.

A fifth (19%) admitted to not saving as much as planned during the past 12 months, while nearly half (42%) of those who managed to save couldn’t resist dipping into their savings and spending during the course of the year - and now have only some of the money left.

There’s just six weeks left to cash in on the UK’s current leading savings offer – Alliance & Leicester’s Premier Regular Saver with a market-leading rate of 12%. Would-be savers should switch their current account and get their New Year savings resolutions get off the ground, before this offer is withdrawn on 7th February 2007.

More than 8 out of 10 (82%) say they have earmarked 2007 as the year to sort out their savings, with nearly a third (31%) saying it is because they have realised the serious implications of not having adequate savings. But not everyone is a savvy-saver and fully aware of all their savings options. How our savings resolutions stand for 2007:

More than half (56%) have plans to put money aside as and when they can afford to in 2007, rather than committing to a regular saving scheme.

Nearly a third (31%) plan to collect their loose change and save it in a ‘piggy bank’ - but will miss out on the competitive interest rates a leading savings account will deliver.

More than one in three (37%) plan to concentrate on saving for short-term goals.

Making our excuses – why we haven’t saved money:

One in eight (14%) say organising their finances is either too complicated or too time consuming.

One in five (20%) say saving wasn’t necessary for them.

Three out of four (74%) say they couldn’t afford to save money in 2006 – and say this may continue in 2007.

Up to 2.4 million (6%) prefer to adopt a ‘live for today’ philosophy and prefer to spend, rather than save their hard-earned cash.

Tips to get your finances in shape:

Your finances can get a financial workout in 2007 and needn’t be time consuming or complicated - a few simple steps can ensure that your money goes further over the next twelve months.

Switch your current account to Alliance & Leicester’s Premier account, which also offers Premier Regular Saver with a market-leading rate of 12%. Customers can save between £10 to a maximum of £250 with a regular transfer from their Premier Current Account - but the offer ends in six weeks’ time on 7th February 2007.

Switch to online banking. Research by A& L has already highlighted how nearly half of Brits (44%) who bank online, feel they are fully in control of their finances.

Set up a regular direct debit to a market-leading savings account and watch your money grow. Research shows that the majority of people consider £50 to £99 is a realistic amount to save each month. So for example, a person saving £50 a month could get a return of £672 after 12 months. A further 15% believe they could save £250 or even more a month. Saving £250 a month would produce a total nest egg of £3,195 gross.

Helen Palmer, Head of Current Accounts at Alliance & Leicester comments: “Despite ambitious plans for the year ahead, unless people commit to saving a set amount on a monthly basis it is highly unlikely that they will get round to saving any money at all.
“When you consider how much people can maximise their returns by putting their money into a high-interest savings account by standing order from their current account, it is surprising to see that some people are still living in the dark ages by keeping money in a piggy bank at home, or naively thinking they will put the money aside as and when they can afford to. With a regular savings account, people are able to save a realistic fixed amount every month and feel secure in the knowledge that their money is working hard with a 12% interest rate. With 45% of people hoping to save a set amount each month throughout 2007, Alliance & Leicester’s Premier Regular Saver offers customers peace of mind that their savings plans for the year are on track and reassurance that they have the best savings rate available.”