Spending money 'being used for savings'
Around one in three savers are looking to save more and spend less in the current financial climate, Alliance & Leicester (A&L) said today.The bank also said that just under half of savers use the internet in order to track down good deals before committing their savings to an account.According to A&L, 36 per cent of young people are planning to boost their savings, even as the economic downturn puts budgets under strain.Hetal Parmar, manager for savings at A&L, said: "It's encouraging to see that, despite difficult circumstances, a good number of people have responded to the credit crunch by putting sensible measures in place, cutting down their outgoings and spreading their savings around. "Our research also shows that people are trying to become more financially astute and many are 'doing it for themselves' by researching online, perhaps driven by the convenience and choice the internet offers."Recent monetary policy decisions from the Bank of England have hit savers hard, however.The Bank's official lending rate has been slashed from five to two per cent over the past three months - a move that has been reflected by savings account rates.
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