Savings levels at two-year high

Britons are saving more of their monthly income than at any other time over the past two years. The latest NS&I Savings Survey shows that although the economic environment remains challenging, the proportion of income that people are setting aside (6.90%)   has returned to levels not seen since before the start of the economic downturn.

The research also shows:

A significant change in the population's financial behaviour with people increasing the amount they are setting aside for the first time in a year. On average, Britons are now saving £85.21 each month, up from £81.94 last quarter  

Take-home income has continued to decline, falling to £1,235.00 from £1,310.10 last quarter, suggesting that savings have become more of a priority

The number of people who say they regularly save each month has increased to 50% of the population. This is the first time for more than two years (since winter 2007/08) that half of the population say they are committed to a savings habit.

Tim Mack, Savings spokesman, NS&I said: "It is encouraging news that many of us are managing to put a few more pounds away each month. However, our latest Savings Survey showed that nearly a third of us still don't feel confident we have enough money to get by in an emergency, and it is only by maintaining our commitment to savings that we will achieve this peace of mind."