UK to save more through recession

UK consumers are planning to save more money this year to help them through the recession, internet bank smile.co.uk has revealed.

Research by the online subsidiary of the Co-operative Bank found that Brits are planning to save 35% more in 2009 compared to last year.

Brits are intending to save an average of £2,605 this year, compared to the £1,882 average for 2008.

The most common item people will save for is a holiday (57%), followed by Christmas (48%), a car (32%), clothes (31%) and a new house deposit (30%).

Smile.co.uk head of savings John Barker said: “With the uncertainty in the current economic climate, the findings show that many people are now changing their behaviour and reverting to the ways of previous generations, when saving up for things was the norm.”

He added that savers should look for the best deal possible when choosing where to invest their money.

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