Wednesday 17 January 2018

Sharp fall in number of savers with one in two now not saving at all

Charlie Weston Personal Finance Editor

THE attitude of consumers to saving has taken a hit.

New figures out today show that the savings index fell to its lowest level ever last month.

A sharp rise in the tax on deposits and a fall in the interest rates paid by banks has driven the index lower, according to the Nationwide UK (Ireland) and the Economic and Social Research Institute.

The index fell to 81 from 98 in December, the lowest level recorded since its inception in April 2010.

The survey found that 48pc of people are now not saving at all, a 15-point increase on December 2011.

Some 65pc of savers are putting aside less than they think they should while only 13pc said they were saving more.

Managing director of Nationwide UK (Ireland) Brendan Synott said: “During 2012 people have found it increasingly difficult to save while at the same time, deposit interest rates have fallen thereby reducing their return for saving.”

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