As cost of living rises, Britons dip into savings

According to the research from Birmingham Midshires’ Saving Britain campaign, Britons are dipping into their savings accounts in order to compensate for overspending on other accounts.

Following 5 interest rate increases in the last 12 months and rumours of further increases, Britons are raiding their savings accounts by an average of £400 over the last 3 months - a 14% increase on the amount dipped into in the last 3 months of 2006.

According to The Saving Britain report, which investigates the savings habits of the nation, over 55s are the worst raiding offenders, taking more than 4 times the amount of those under 30.

In addition, Londoners are most likely to raid their savings and Northerners least (£716 compared to £242). Young people were most likely to feel the pinch over the last 3 months, with over 37% using their savings to compensate for current account overspending. Nearly 23% of over 55s raided their savings to pay for emergency home or car repairs.

A spokesperson for Birmingham Midshires highlighted that this is an ideal time for saving, interest rates are at a 6-year high meaning great returns no matter how small the amount you save.

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