Recession 'encouraged people to save more money'

More than half of all British consumers feel the recession had no negative impacts on their savings habits during 2009, it has been reported.

Research conducted by Barclays indicates that 17 per cent of people actually saved more than usual, while a further 37 per cent put away the same amount of money as in any other year.

The bank said that better paid jobs, fewer nights out and reductions in mortgage payments due to low interest rates all contributed to increased saving.

Young people especially succeeded in saving during the recession, Barclays claims, with 67 per cent of people aged 16 to 24 experiencing no negative impacts on their ability to conserve finance.

Andy Gray, head of savings for Barclays, said many people had perhaps changed their lifestyle in order to boost and/or maintain their savings.

"We're hopeful that this is an enduring change - the beginnings of a lifetime habit that will help see them through further good and bad times.

"And perhaps the younger generation - who have never really experienced a downturn like this before - are being influenced by older members of their family."

Consumers may hope for an increase to the Bank of England's base rate as they bid to access the best savings rates and maximise the value of cash – interest rates have remained at 0.5 per cent since March 2009.

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2010-02-15 09:41:28 © Moneyextra.com