Savings 'will not see a resurgence in 2011'

The number of people looking for the best savings interest rates is not expected to improve in 2011, according to one industry body.

Building Societies Association believes that the level of 2011 savings will be dependent on the more general economy and with uncertainty still surrounding the UK's recovery savings are expected to suffer.

The comments from the BSA come after the NS&I released figures which showed that the level of savings in the UK had dropped during the autumn, with Brits saving an average £82.92 a month compared to £88.65 in 2009.

Adrian Coles, director general of the BSA, said: "The amount of money that customers have taken out has been more than they have put in. That's been the case for the last couple of years."

Mr Coles believes that the difficulty surrounding savings is down to the poor savings interest rates offered and the desire for consumers to pay off debts.

Research from Equifax found that more consumers are making the most of the low interest rate with 36.1 per cent choosing to pay off their debts.
 

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2010-12-22 13:33:09 © Moneyextra.com