Winter season sees fall in savings

The latest NS&I Savings Survey has revealed that this winter has seen the amount of money the population is saving decrease to its lowest level in over two years.

The British public is now saving, on average, 6.25% of their monthly take-home income. This figure is now at its lowest level since summer 2007, when it stood at 6.22%, and has fallen consistently since this time last year when the figure was 6.48%.

In monetary terms, this means that average savings have fallen from £90.12 twelve months ago to £81.94 today. In addition, the average income has fallen to £1310, from £1384 last quarter and is at its lowest level since spring 2008 (£1306). Meanwhile, the amount of money regular savers set aside each month has fallen below £200 for the first time in over a year to £195.08.

Examining savings attitudes across the country, savers in East Anglia and the West Midlands recorded positive savings behaviour, managing to set aside more money as a percentage of their income than other areas. East Anglian savers were highest at 7.77% (6.01% in winter 2008/09) with the West Midlands at 6.50% (5.89% in winter 2008/09). In Greater London the average amount saved per person fell below £100 for the first time in almost two years. On average people in London are now saving £99.45 per month.

Tim Mack, Senior Savings Spokesman, NS&I said:

“With the new financial year approaching, now is a good time for people to take a closer look at their finances and set themselves savings goals for the year ahead.

“Fewer people say they are regularly saving money this quarter. Over the past five years, this figure has fluctuated between 47% and 55%, but this winter it has fallen to 44%, one of the lowest ever recorded levels. “