Could high interest rates prompt people to save?

Ever-increasing interest rates might be just the thing to encourage people to put more money into their savings, an independent financial advisory firm has said.

According to Christie Scotts, people have little incentive to save money when interest rates are low.

In addition, a spokeswoman said that a culture of consumerism and high consumer spending has harmed savings levels.

“Our consumer culture has led to a situation where we want instant gratification and follow this need rather than saving for our futures”, she explained.

Building society Birmingham Midshires (BM) told the Independent this week that average savings levels fell to £910 per person in the second quarter of this year.

That is one-third less than the amount saved in the second quarter of 2006, which was £1,376.

© Adfero Ltd

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