Number of savers and size of monthly deposits increase

Britons' appetite for saving has increased considerably over the last 12 months, as savers deposit 12 per cent more money each month than they did this time last year, according to figures from Santander Savings' Snap Shot barometer.

At present the average Briton deposits £114 per month in a savings account, up from £102 in September 2010, suggesting that UK savers are stepping it up a gear. In addition, the total number of people with money saved has increased, leaving just one in five (21 per cent) Britons with absolutely no funds to fall back on, compared to almost one in three (30 per cent) a year ago.

Santander's findings indicate that this uptake in savings may be set to continue as one in four (12.4 million) of those questioned said they intended to increase the size of their monthly deposits over the next three to six months.

Matt Hall, Head of Savings commented: "The importance of having cash saved for a rainy day has never been more real and as a result, many people are taking a long hard look at their finances and identifying ways to start saving more."

While Britons' willingness to save has increased considerably over the past year, it has also be hampered by the current base rate, with one in 10 people in the UK admitting that they will wait for the Bank of England to raise interest rates before they consider saving more or saving at all.

And as inflation reaches 4.4 per cent, over a quarter (27 per cent) of Britons say they are concerned about the impact that this will have on the purchasing power of their savings. Only 35 per cent of Britons said that their saving habits were unaffected by inflation or interest rates, highlighting the sensitivity of the public's attitude to saving in the context of the wider economy.

‘Snap shot' of a UK Saver

The research reveals:

Savers put away on average £114 each month
Men saving £132
Women saving £98
The average total amount held in savings is £20,604
61 per cent have an instant access savings account
43 per cent currently hold a Cash ISA
20 per cent have a regular savings account
14 per cent hold a Stocks and Shares ISA
8 per cent have a notice savings account
9 per cent have savings bonds

Matt Hall continues "It's great to see a higher proportion of savers committing more money each month because it highlights that people are taking a more long-term approach to their finances. Our outlook for savings over the next 12 months is one of cautious optimism; people are still feeling the pinch as the cost of living continues to rise but the positive results from our Savings Snap Shot shows that people are still dedicated to saving."   

Looking regionally, those living in the South West are banking the least each month with average deposits of just £69. In contrast, Londoners are streets ahead, saving 57 per cent more than the national average with monthly deposits of £179.