The National Savings and Investments bank has reported that on average UK citizens are saving more money than they have been in the last ten years.
In 2014/15 the average saved per head for each month was £113.77, a figure significantly more than the £101.03 in the year previously. This is a 9.25% increase across a year.
That average figure for each month account to 8.52% of their income which is another figure that is higher than any time in the last decade.
The retail director at National Savings and Investments, Julian Hynd, commented on the news: ìThe latest results are encouraging, but we hope more people will be putting aside money into their rainy day savings, so they feel ready to deal with an emergency should one arise.î
The figures illustrate what the average consumer is putting into various financial savings products such as ISAs as well as their bank accounts. However, it does not include pension contributions.
The steep rise in the figure over the last year has been partly attributed to a movement among the over 65 demographic to purchase governmentís pensioner bonds. This is because such bonds offer very appealing interest rates.
However, this explanation ignores the fact that savers in the other demographics have had to cope with the ongoing trend of low interest rates, with some as small as 0.01% per annum.
Across the last decade, the average monthly savings rate has varied. In 2005/6 the figure was £85.71 which was 6.9% of income. In 2012/13 it was £103.68 which was actually higher than the figure reached a year later in 2013/14.
Make the most of your money by comparing savings acccounts with MoneyExpert.com.