Thursday 17th May 2007
No matter how many savings products banks put out or how they promote them, young people just don't want to save, according to Alliance & Leicester.
Ross Dalzell, marketing manager for savings at Alliance & Leicester said that it was a myth that young people were savvy about savings and the younger generation was much more likely to take out a loan than a savings account.
Mr Dalzell said: "There's a consensus out there that younger people must be starting to save and the savings market must be becoming younger…In reality, we find, no matter what we do, now matter what products we launch, it's the 45 plus market who are savers.
"Even our premier regular saver product…which on paper is perfect for a young person saving for their first house, or saving for a wedding…. we still see the vast, vast majority coming from older, fairly savvy savings customers who are keeping a close eye on the markets and making sure they getting the best rate on their savings."
He said that more than 80 per cent of savings products were held by older customers and that other banks also experienced the problem of struggling to get the younger market to save money.
"Whenever you launch young worker style current accounts…or some of the graduate accounts that the big four banks offer, where they come with link savings accounts, they never get used," Mr Dalzell concluded.
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