Brits dip into £2.29 billion of savings for Christmas

One in five Britons will use their savings to cover all or some of their Christmas spending this year, according to Santander's quarterly Savings Snap Shot barometer. Those dipping into their savings will take out an average of £212 each, resulting in the withdrawal of a massive £2.29 billion from the nation's deposit accounts.

The findings show that the majority (62 per cent) of Brits are cutting back this Christmas, reducing the amount they spend on Christmas gifts, parties and other festive outgoings. Gifts for friends and family are first on the list of cutbacks, with 39 per cent of people planning to spend less on these this Christmas. In a similar vein, 22 per cent say they will spend less on food, drinks and parties and one in five (18 per cent) will save cash by reducing expenditure on decorations.

Almost a million (2 per cent) are already planning to exchange gifts for cash to help alleviate the financial burden of the festive season.

With the average Brit now depositing £100 each month, those that dip into their cash savings will on average be withdrawing around 16 per cent of the total saved this year.

Reza Attar-Zadeh, Director of Savings & Investments commented: "While many people have decided to rein in their spending this year, Christmas still looks set to make a significant dent in the nation's savings. With this in mind, we're encouraging savers to keep an eye on their expenditure over this period so that when it comes to saving in the New Year, they're starting from a good base."

Santander's Savings Snapshot reveals a mixed picture for total savings this year, with 42 per cent of us currently saving nothing and one third (31 per cent) of people claiming to have no savings whatsoever. On a more positive note, the average Brit is still setting aside £100 and one quarter (26 per cent) of us are also planning to increase this amount over the next three to six months.