Brits increase savings pot

New research from Birmingham Midshires' Saving Britain campaign suggests Brits have increased the amount they are saving on a quarterly basis by 136% compared to this time last year.

In the three months to January 2010, Britons saved an average of £776, compared with £329 during the three months to January 2009.  However, this is less than the £849 saved in the three months to July 2009.

It also seems that although two in five British adults (38%) admit to raiding their savings during the same period, the average raiding amount has reduced to £1,724 from an all time high in July 2009 of £2,191.

Commenting on the latest findings, John Bianco, Head of Birmingham Midshires Savings Products said: 'It is encouraging to see that people are taking their savings seriously, putting away more and raiding less. In the current economic climate people have revisited their savings habits with a marked increase in people saving for a rainy day."

Reduction in Raiding

Savers in the East admit to having raided their savings accounts by an average of £2,250 in the last quarter. This compares to the lowest average savings raid of £616 in Scotland.

Almost a quarter (23%) of respondents raided their savings to pay for emergency home or car repairs whilst a sixth (16%) used their savings to pay for a holiday.

More than a third of respondents in the Midlands (36%) raided their savings to pay for emergency home or car repairs whilst a 16% of savers in the North used the money to splash out on impulse gifts or luxury shopping.

Shift in Savings

Savers in the South have set aside the most in the past three months (£872) compared to just £565.20 for Welsh savers.

The percentage of people saving for a rainy day has increased by 9%, from 18% to 27%.

Surprisingly, almost a fifth (19%) of savers in the East do not know how much money they have saved in the last three months, suggesting they do not keep a track of their spending and savings habits.

Nearly a third (31%) of savers in the Wales are putting their pennies away for a holiday whilst one in ten savers (11%) in London, the North and the South are determined to build a deposit for a house.