Money News

Brits savings are the lowest in 2 years

Are you saving enough? Brits are being put off due to poor returns.

The UK’s level of saving is the lowest in two and a half years, with Brits putting just 6.25% of their wages into saving accounts each month.

The average monthly savings are now at £81.94 – compared to £90.12 a year ago.

Research by National Savings and Investments (NS&I) finds the drop in savings has come with a 5.3% fall in average incomes.

The number of regular savers is also falling to the second lowest level on record as only 44% of people are able to put cash aside on regular basis.

Regular savers on average put aside £195.08 a month, down 4%.

Across the nation, there is a mixed picture of saving.

East Anglia’s saving rose 29%, while those in the West Midlands put aside 10% more.

In the south-west and the East Midlands savings were down 16%, and savings fell 12% in Wales.

Chris Eagle, commercial manager at Creditchoices.co.uk, said: “With interest rates so low on many accounts, the push to bother saving can seem low. We’ve now reached the one-year milestone with the base rate at 0.5%,

“However, there are deals out there that can earn you a decent return, especially if you can lock away your money away for a year or two.”

He added: “The first stop for saving should be an ISA, and with the end of the tax year coming good deals are coming out as banks and building societies try to tempt savers.”