Money News
More people are saving than this time last year, but people across the UK have found themselves in a savings deficit over recent months, according to new research from savings provider, Birmingham Midshires.
While the research shows 69% saving vs 66% this time last year, it also reveals that the current economic climate - a time when purse strings are tightening throughout the UK as a result of increasing bills and higher levels of debt - has had a distinct impact on savings balances.
The 'Saving Britain' report - which has been probing Britons on their savings habits since 2002 - has found that Britons set aside an average of £814 over the past three months, yet raided their accounts by an average of £961 over the same time period - leaving an average savings deficit of £147.
The figures are in stark contrast to savings habits this time last year. In January 2007, while respondents set aside a similar amount of money over the previous quarter, at £813, they raided their savings for an average of £349, leaving a positive savings balance of almost £500. The 2008 figures, on the other hand, represent a threefold increase in the amount typically raided from savings accounts.
25 February 2008 © Moneyextra.com
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