UK saving at ten year high
09/03/2015
The amount of money people in the UK are saving has hit a ten year high, according to National Savings and Investments (NS&I).
People in the UK are now saving an average of £113.77 each month, which equals to 8.52% of the average income. Both these figures are the higher than any time in the past 10 years. The savings include money put aside into ISAs and other savings accounts, but does not include pension contributions people may be making.
In the 2014 Budget, Chancellor George Osborne announced the New ISA which was then launched in July. He also increased the ISA savings limit to £15,000, which was a £3,480 increase from the previous annual allowance. These changes may have contributed to the increase in spending habits, as well as the rush amongst those over 65 to buy the government's pensioner bonds, which offer attractive rates of interest.
The rise is surprising, considering interest rates are at their lowest level in years, which has reduced savings rates to the minuscule amount of 0.01% per year.
Julian Hynd, the retail director at NS&I said:
"The latest results are encouraging, but we hope more people will be putting aside money into their rainy day savings, so they feel ready to deal with an emergency should one arise."
Need financial Advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Customers Benefit From 'Savings War'
Savers continue to be the big winners of the credit crunch, new data from best-buy tables suggests.Rates for both tax-free cash ISAs and mainstream savings accounts are on the up, the Guardian reports. The high-street "savings war" is a direct result of the credit crisis, the primary feature of which is the freezing of inter-bank lending.With access to funds on these money markets limited by the h...
Read MoreWill Britain be forced to shoulder compensation bill for the Icelandic banking collapse?
Despite the fact that the UK government is publicly stating it will continue to pursue the Icelandic authorities for repayment of a multibillion pound loan which was to be used to compensate UK savers, behind the scenes it looks as though the UK authorities are readying themselves to give up on the loan. There is growing concern within Iceland that the £3.4 billion compensation package, which was...
Read MoreParents put pocket money first
Parents prioritise giving their kids pocket money over saving for their future, according to a new survey.According to the findings by Engage Mutual, parents much more likely to give their children pocket money than they are to put cash in a savings account for them - 48 per cent of parents with children under the age of 25 give them pocket money, compared to just 32 per cent who save for their f...
Read MoreTeenage financial know-how 'on the rise'
Knowledge of financial products among teenagers has been drastically improved by government education initiatives, Britain's largest quango has said.According to the Learning and Skills Council (LSC) the advent of education maintenance allowance (EMA) has encouraged young people to open bank accounts and consider their savings.Research released today shows that three per cent of 16-year-olds in En...
Read MoreGordon Brown increases the pressure on Iceland
Gordon Brown yesterday entered the fray with regards to the Icelandic banking compensation bill which has been held up by activists in Iceland. The British Prime Minister has threatened "diplomatic war" with Iceland if the government goes back on a pledge to pay £2.3 billion to the UK government. This puts the Icelandic authorities in a very difficult situation because they have lost support of v...
Read More