Spring savers had Christmas wrapped up

British savers covered almost a quarter (23%) of Christmas spending using their savings pot, according to the latest quarterly Saving Britain research from BM Savings.

A tenth (10%) covered the entire cost of Christmas by saving up throughout the year. This is in contrast with over a fifth (21%) who said they did not have any savings to help pay for their Christmas festivities.

The average amount people withdrew from their saving pot fell to £1,873 compared to £2,130 in the last quarter but this is still higher compared to this time last year.  Over a third of savers added £768 to their savings nest, with 25-34 year olds topping the league adding over £1,000. This is compared to those facing retirement (65+) who saved on average £621 this quarter.

Commenting on the latest findings John Bianco, Head of Products at BM Savings said: "As we all know, Christmas can be an expensive time. It's encouraging to see savers planned ahead and have started the New Year with confidence knowing that they have the funds available for whatever the new decade holds. For those trying to keep a New Year's resolution, now is the ideal time to start saving with a number of great rates appearing across the market."

Spring savers

Savers are organising themselves for 2011, Londoners aged 25-34 increased their savings by £1,096 in the last quarter

Over a third of Scottish savers (35%) have up to £5,000 in savings, compared to the UK average of 22%.

Over a third (38%) of woman have saved at least £500 in the last quarter compared to a quarter of men (24%)

New Year Raiders

Half of raiders (51%) took money out of their savings account in the past three months compared to a quarter (25%) of Scottish savers.

Under a third (30%) of Northerners who raided their savings did so for emergency home or car repairs

A fifth (21%) of 18-24 year olds don't know how much they raided

BM Savings has a wide range of accounts and has recently increased the interest rate on the e-Saver. Ideal for savers wanting monthly income, the account offers a market leading variable interest rate of 2.78% AER. Savers worrying about the effect of inflation should consider the BM Savings Inflation Bond which, over the five year term, follows the annual rate of the Retail Price Index, currently at 5.10%. The account also pays an additional 0.25% fixed interest rate as well as protecting the capital so savers will not be affected should deflation occur.