UK savings fall by 20%

Savings levels of people in the UK have dropped by 20 per cent in the past three months, it has emerged.

The figures, which show that the average Briton has saved £413 since July, are the lowest recorded so far this year, according to a study by Birmingham Midshires.

Research found that those aged 30 to 50 years old saved the most for the third quarter of the year, with an average of £464. By way of comparison, the amount saved by those under 30 was £295.

The average savings amount for January-March 2006 was £495, while the figure for April-June 2006 was £525.

Lower savings have been attributed to spending as Christmas gets closer, according to the director of savings operations for Birmingham Midshires, Jason Robinson.

“Looking at current levels of savings, it would appear that many Brits may have started spending for Christmas early, and so savings have fallen by the wayside slightly.”

While Mr Robinson maintained that Christmas is a time for relaxing and enjoyment, he also advised savers to “make sure you’ve still got one eye on the amount that you spend so that the start of 2007 can still be fruitful”.

The research was conducted by Birmingham Midshires as part of its Saving Britain campaign, which aims to study attitudes towards money and savings. The firm won the Your Money award for best online savings account provider in 2006.

© Adfero Ltd

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