UK a ‘nation of savers’?

Posted on March 3, 2008
Filed Under Finance

The recent credit crunch and subsequent economic uncertainty has led many people to question the country’s spending habits - and wonder if the time is about to come when borrowers start to pay. However, new statistics have revealed that Britons are a step ahead and are already putting their cash away in savings and investments.

Research conducted by the Office for National Statistics (ONS) found that seven out of ten people have money in savings accounts, shares and individual savings accounts (ISAs), among other products. For most people, a regular savings account has proved the main way of saving for the future, with 54 per cent opting for deposit accounts. Some 34 per cent of Britons saved via ISAs, while 19 per cent have arranged life insurance, the report said.

Despite the significant numbers of savers reported in the study, there remain millions of people who have not put any money aside in investments or savings accounts. According to the ONS report, 39 per cent of respondents said they agreed with the statement ‘I would rather enjoy a good standard of living today than save for retirement’. When questioned on the best ways to save money, 60 per cent said property, while 49 per cent thought pensions were the best option.

In the current economic climate, putting money aside - whether in property, savings or pensions - can only be a good thing. David Kuo, head of personal finance at Fool.co.uk, believes that consumers should make an effort to start looking out for their financial health, especially when it comes to savings. He says that while it is difficult, it is always advisable to keep spending to a minimum and put the money left over aside for a rainy day, because you never know what will happen in the future. After all, it’s always best to be prepared in case of an unexpected shock such as a redundancy or a rise in the rate of interest, which could have a knock-on effect for consumers on tracker mortgages.

Those considering opening a new saving account in the UK should act quickly in order to qualify for good deals on rates while they last, a new report has advised. According to research from Moneyfacts, there are “cracking” deals around but they may not last long.

“Whatever the underlying reasons for providers keeping the rates high, it is good news for savers,” said Rachel Thrussell from the finance site.

Disclaimer:
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.