Do You Have A Savings Account?

New research reveals that over 20% of adults in the UK don’t have money deposited in any form of savings account.

The research from Santander Savings shows some 11 million adults in the UK don’t have any money deposited in savings.

Not only that but also the average monthly deposit amount is falling – down from £112 to a current £105.

On a positive note, looking ahead, Britain’s saving habits look set to improve as 23% of people are planning to increase the amount they set aside over the next few months. This figure rises to 43% for younger savers aged 18 – 34.

Matt Hall, Head of Savings at Santander, commented: “The fact that people are saving slightly less this year than last is in-line with expectations, as household budgets continue to tighten but living costs still edge upwards. The slight reduction in monthly deposits simply shows that people are managing their money, with a significant proportion of savers planning to increase the amount they deposit over the next few months.

“Our real concern is for people who have no money set aside in savings accounts and for those who have stopped making monthly deposits. We’d urge these people to review their spending thoroughly to identify opportunities to make even the smallest of cutbacks. It’s especially important given the current economic uncertainty that customers have some savings to protect themselves from unforeseen events.”

MoneyHighStreet comments: “Getting into a saving habit as early as possible is key to ensuring you are in as good a position with regards to savings as you go through your adult life.

“Clearly for many saving is not easy but by trying to save even a small amount each month you’ll be surprised how quickly you can build up at a least a good reserve to cover those unexpected expenses.

“Do make sure you get the maximum rate of interest on your savings. Many people are attracted by high initial interest rates offered on savings accounts. These are often set to attract your new business and can be fantastic. They usually include a bonus arrangement whereby if you keep your savings account open or perhaps growing month on month, at the end of the defined period you will receive interest on your savings.

“Having placed your savings in a high interest paying account, you will need to regularly reassess your returns and if need be switch your money to another account to get the best possible deal. For example some high interest savings accounts will lose their bonus after the first year payment and therefore are not likely to be as competitive going forward.

“There are numerous savings accounts available and you will need to look around for the best to suit your needs. Santander for example offer a range of accounts including tax-free ISAs plus a market-leading eSaver.”