Savings Levels In The UK Increase
We reported recently on how individuals in the UK have changed their attitude towards their finances, with regard to savings and taking out new personal loans and how, although people were attempting to save some money, there was a greater focus on repaying existing debt on loans and credit cards.
A new survey has found that, although many individuals in the UK are starting to apply for personal loans once again, there has also been a dramatic increase in the amount which people are putting away each month in personal savings accounts.
The survey, which was conducted by Birmingham Midshires, revealed that the average person in the UK is now saving twice as much as they were twelve months ago.
Over the course of the past three months, savings accounts took an average deposit of £1,031, compared with £776 over the course of the previous three months and just £554 at the same time twelve months ago.
The main reason given for the increased level of savings was to build an emergency fund to be kept for the proverbial “rainy day”, with just over a quarter of those interviewed giving this as the reason.
A similar number of individuals said that they were saving for a holiday, or major purchase such as a new car.
This is an encouraging sign for the economy and people’s financial well being in general, as there is an increase in the number of people saving up for the things they want, rather than relying on their credit card, or taking out another personal loan to make the purchase.
John Bianco at Birmingham Midshires commented on the changing trend, he said “It is reassuring to see that people have increased the amount they save for the second quarter in a row, as good savings habits are important to ensure you can plan ahead financially.”
