More than two-thirds of 2,000 people questioned (67%) say they try to save what they can, when they can, which is slightly higher than 2010 (65%). That’s despite half (50%) who ‘don’t have much to save’ – which is 3% more than this time last year.
Mark Huggins, director of AA Financial Services, says:
“Our findings suggest that while people are worried about taking on debt and are trying to reduce it, they are also still doing their best to maintain a savings habit.
“Despite that, a third of respondents (33%) who do have savings admit they have no idea what interest rate they are earning. A quarter said that they never even check how much their savings earn.”
Mr Huggins says he is surprised by this:
“At a time when there is less money but with small improvements in interest rates, I would expect more people to be taking an interest in making their money work for them.”
The research shows that most people still keep their savings in a ‘high street’ bank (60%). However, more than twice as many are looking to non-bank providers (8%) such as the AA which often offer higher than average savings rates, compared with 3% a year ago.
Mr Huggins adds:
“People are also increasingly confident about using online savings accounts. Almost a quarter say they operate a savings account from a computer, compared with just 13% last year.”
Instant-access accounts and cash ISAs remain by far the most popular vehicles for putting away money, while there is a small increase in the number of savers using a fixed rate account.
“These figures may represent small movements over the space of a year, but I believe is shows that British people are beginning to take greater care over how they look after their money and December’s reduction debt is certainly encouraging.
“Clearing debt reduces loan and credit card interest payments and opens up scope for saving.
“There is still a lot of room for improvement though and this is where saving the pennies turns into pounds.
“Those with high levels of savings are astute to interest rates and a good start would be for everyone to look at their savings options. Whether you have £1m to save or can afford just £10 a month, moving your money and opening an account isn’t difficult.
“But it could mark the start of making a big difference to your savings.”
