Brits to spend savings on Christmas

Brits will use £3.45 billion pounds of their savings this year to help cover their Christmas spending, with a third of us (32 per cent) planning to use 9 per cent of this year's savings - an average of £221 each, according to figures from Abbey Savings.

It's no surprise however that the majority of people (59 per cent) are planning to cut back this Christmas, with gifts for family and friends first on the list of cut backs, as 42 per cent of Brits say that they will reduce spending on these. Second on the list is socialising, as many of us (23 per cent) plan to reduce spending on Christmas drinks, parties and meals. Shockingly, almost one million Brits are already saying they will return the gifts they receive this year in exchange for cash, in order to reduce the financial burden of the festive season.

Most concerning however is 39 per cent of us are currently saving nothing and one fifth (20 per cent) of people claim to have no savings whatsoever to fall back on this Christmas.

Reza Attar-Zadeh, Director of Savings & Investments commented:  It's clear that many people are planning ahead and scaling back this Christmas in an effort to reduce their spending, which seems a sensible move.  We know that people still rely on their savings to cover many of their Christmas outgoings but savings shouldn't just be for Christmas, and we encourage people to keep a healthy balance, so that they're starting the New Year from a good base".

Reza Attar-Zadeh, continues: "Whether savers decide to put their money aside for the long term, for a specific purpose such as a Christmas or a holiday, or for emergencies, the most important thing is to work out a plan of action that works for them - then choose the right accounts to suit their needs"

Abbey, Alliance & Leicester and Bradford & Bingley have a range of competitive savings accounts to suit each and every savers needs, including our Fixed Rate Monthly Saver, a regular savings account allowing savers to put aside as little as £20 a month (up to £250 a month) paying a highly competitive 4.00 per cent gross/AER fixed for one year. Or our Instant Access Saver account paying 2.50 per cent gross/AER which includes a 1.50 per cent bonus for one year with access via the branch or telephone.