Savings accounts underused by UK public
A report today by HSBC confirmed that 30% of adults in the UK have savings of less than £249 and indeed 19% have no savings whatsoever. While in some ways this is not necessarily a major surprise, bearing in mind the economic backdrop, the fact is that around 15 million people in the UK would struggle to get through the weekend if they lost their job tomorrow!
HSBC believes that the UK population should, where possible, be putting aside just a few pounds a month to help build up some form of nest egg for the future and create a buffer between difficult economic situations, such as that today, and everyday budgetary requirements. However, at this moment in time more and more people are struggling to make ends meet let alone putting money aside for savings and this report and its conclusion is likely to fall on deaf ears.
When you also take into account the fact that savings rates in the UK are minimal to say the least, and have been for some time, where is the real incentive for adults to put money away for a rainy day? Maybe when savings rates return to "traditional levels" we might see more interest in putting money aside for the future but until then it seems highly unlikely.
Share this..
Related stories
Will Barclays, Alliance & Leicester and HSBC pass on base rate savings?
While many of the financial headlines will state that the majority of UK banks have fallen into line and are willing to pass on base rate cuts to consumers we have still to see any sign of change from Barclays, Alliance & Leicester and HSBC to name but three. These banks are still resisting the growing pressure to pass on savings to UK customers but what they are expected to fall into line and ver...
Read MoreWhat is an ISA and how do I get one ?
If you pay income tax and have some spare money to save or invest you should know about Individual Savings Accounts (ISAs). ISAs have been available since April 1999, and they offer an attractive tax-free option to anyone aged 16 or over. Junior ISA’s (JISA’s) are available to those aged under 16. ISAs have replaced TESSAs which in turn had replaced PEPs (Personal Equity plans) W...
Read MoreStudent accounts
Becoming a student is possibly when you'll be thinking about opening your first bank account. You might be tempted to go for free gifts and perks such as cinema tickets, but look at the long-term facilities a student bank account can offer before you decide which one to go for. Banks see you as tomorrow's high earner so will be vying for your custom. Check that the bank has a cash machine close...
Read MoreISAs boom
The amount of money saved in Individual Savings Accounts (ISAs) has now hit £208 billion, according to recent figures from HM Revenue and Customs (HMRC). ISAs have experienced a significant increase in value in recent years, now worth a total of £29 billion, seven times more than in April 2000, and almost as much as is on credit cards and other debts, excluding mortgages. ISAs have grown becaus...
Read MoreWhat about the savers?
As the UK government steps forward yet again to bail out the banking sector with billions upon billions of UK taxpayers money there is serious concern that savers are becoming something of an irrelevance to the UK government. Despite repeated promises to look at the situation of savers, many have seen their income streams obliterated over the last few months and more and more older people are havi...
Read More