Brits cut back as recession continues to bite

The vast majority of Britons are still continuing to cut back on their outgoings, according to new research for Santander Current Accounts, with the recent emphasis on shopping around for good deal on groceries, switching off lights and electrical items, and starting a culture of ‘make do and mend'.

But while over half  (55 per cent) are looking around for the best grocery deals and one in five (21 per cent) have started taking their lunch to work, three quarters of Britons (74 per cent) have no plans to review their current account in the next year.

Seven in ten (70 per cent) Britons, or more than 34 million people, have not switched their main current account since 2000, and they could be missing out on a simple way of making their money go further. The high interest accounts from Santander and Alliance & Leicester can generate £125 in interest in the first year, for a few minutes effort.

Helen Bierton, Head of Santander Current Accounts said: "Forty million people are still feeling the pinch and trying to find ways of slashing their outgoings to cut back, including starting a ‘make do and mend' culture, buying second hand goods on eBay and in charity shops, or cutting reducing household help and their childrens' pocket money."

Helen Bierton continued: "One simple way that people can make their money stretch further is to switch their current account to one which gives them something back. Most accounts on the market offer little or no interest. Santander and Alliance & Leicester are offering different accounts with a market-leading interest rate of 5 per cent interest which could earn them £125 in interest in the first year, plus access to a free overdraft. This is a real win-win situation."