Britons’ appetite for saving is growing

This is according to new figures from Santander Savings’ Snap Shot barometer which shows that 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%) Britons with absolutely no funds to fall back on compared to almost one in three (30%) 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%, over a quarter (27%) of Britons say they are concerned about the impact that this will have on the purchasing power of their savings.

Only 35% 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.

The research reveals:

  • Savers put away on average £114 each month - men saving £132 and women saving £98
  • The average total amount held in savings is £20,604: 61% have an instant access savings account; 43% currently hold a Cash ISA; 20% have a regular savings account; 14% hold a Stocks and Shares ISA; 8% have a notice savings account; and 9% have savings bonds
Matt Hall continued: “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% more than the national average with monthly deposits of £179.