Consumers 'planning to increase savings'

More than a fifth of people plan to increase the amount they save during the next six months, it has been reported.

The Nationwide Savings Index reported that 21 per cent of consumers intend to put more money aside over the next half-year, compared to 17 per cent who expect to save less.

Meanwhile, some 57 per cent of people believe it is important to build a fund for the future, up from 55 per cent in August.

Those seeking to maximise their income from savings should be looking to access the best savings rates available on the market – especially as the Bank of England's base rate remains at 0.5 per cent.

Andy Hutchinson, head of savings at Nationwide, said the strong rise in the Savings Index reflected "the parallel bounce in the overall feel of consumer confidence in September".

He added: "It is possible households are becoming increasingly confident that the recession is coming to an end, even though their positive sentiment may be premature.

"This could have boosted confidence in consumers' ability to save in the future and it will be particularly interesting next month to see the impact of the recent ISA changes for the over-50s."

Last week, Investec Private Bank warned that many UK consumers are failing to check the best interest rates available on savings.

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2009-10-16 10:13:52 © Moneyextra.com