Only a third save, say B&B

Two thirds of people in the UK do not regularly save and a hardcore fifth of the population never makes any savings at all, says Bradford and Bingley.

Over ten per cent of people surveyed said that they would rather spend their money on clothes, gadgets and go on holiday than put their money in the best savings account they could find.

More than a quarter say that they don’t make enough money to save any.

But with the overall figure for household debt remaining over a trillion pounds,Bradford and Bingley says that there is a crucial imbalance between the amount that people are spending and what they can afford to spend.

“The spending culture has certainly replaced the savings culture in the nation’s consciousness,” said Steve Potter, head of savings at Bradford and Bingley.

“With so many attractive interest-free deals many people are being tempted to buy now and pay later. Just how much they will later pay, however, remains to be seen.

“What’s clear though, is that if consumers don’t start looking to the future and putting in place proper savings plans they’ll be facing many ‘cash strapped’ years,” he added.

Both those who do and those who don’t save could do better if they found the best savings account, say Bradford and Bigley, with only 12 per cent ever checking the savings market, and 27 per cent saying they never check rates.

Only six per cent said that they would transfer to the best savings account rates, 32 per cent would only move if there were significant differences and 11 per cent said they would not move at all.

Sixty per cent simply trust their bank or building society to give them the best savings account rate while 44 per cent have no idea how their account compares to the best savings account.

© Adfero Ltd

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