£800bn boost to household assets

UK households amassed over £800 billion in new savings since the start of the decade, according to research published by Lloyds TSB.

Between the start of the decade and 2009, UK households accumulated £802 billion in new savings which is an increase of 46 per cent on the figure for the 1990s.

Suren Thiru, economist at Lloyds TSB, said: "This has been a significant decade for savers in the UK. The substantial rise of new household savings over the past ten years reflects the extent to which savers have worked hard to build their nest-egg."

He added that the level of new households saving has weakened over recent year as a consequence of the financial crisis and the low bank base rate which has in turn caused savings interest rates to decrease.

Lloyds TSB believes that the significant increase in new saving was driven by a rise in deposit based savings, with the rising popularity of ISAs helping to support the increase.

Earlier this month Post Office research revealed that 15 per cent of UK adults have a secret savings account, which amounts to around £14 billion of hidden savings.
 

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2010-09-27 12:59:14 © Moneyextra.com