British savers keen to stash – but have less cash

Savers are putting aside a third less money than during the same period last year - but more people can boast of having at least some savings, according to new research.

With interest rates at a six year high, more people than ever are being encouraged to save, according to the latest findings from Birmingham Midshires’ regular Saving Britain report. Over two thirds of people (67%) now have some money put aside for a rainy day, compared to 62% during the same period last year. However, rising costs in other areas mean that people have only managed to save an average of £910 over the last three months - one third less than the amount saved over the same period a year ago (£1376).

At a time when the Office of National Statistics has revealed the lowest savings ratio since the 1960s, the Saving Britain report - which questions 2,000 people about their savings habits every three months - reveals that, while the sums put aside may have fallen, a sustained period of interest rate rises has encouraged more people to save.

Jason Robinson, director of savings operations for Birmingham Midshires comments: “It's easier said than done but it's recommended that people have three months’ salary put aside in case of financial emergencies – this equates to £5,899 for those on an average income."

Younger people are saving the highest sums with those aged 18 – 24 putting aside £1523 during the past three months, compared to £688 for the over 55s.

During the last three months, male savers put aside a third more than women (£1105 and £733 respectively).

The most conscientious savers are in the Scottish Borders region, where 86% have savings, compared to just 59% of those in Lancashire.

Those in North Scotland have the most put aside for a rainy day: £1820, compared to a slim ‘safety net’ of £583 for their near-neighbours in Central Scotland.

Those in the South West are in most need of savings encouragement with one in three people (33%) saving nothing at all during the past three months.