Savings hit record high despite shrinking economy

The amount of money Brits are putting aside for a rainy day has reached a record high, according to research by National Savings & Investments (NS&I).

The average UK consumer deposited £92.41 per month into their savings account this spring, the highest amount since NS&I records began in 2004.

Regular savers, meanwhile, put aside an average of £209.23 per month, a figure that also sets a new record.

The proportion of consumers saving regularly remained at 47% for the fifth consecutive quarter.

NS&I said the increase in saving came despite an overall decline in income levels, and is being driven by the fear of unemployment.

Over half (54%) of those polled said they plan to use their savings for an emergency, such as being made redundant.

Dax Harkins, senior savings strategist at NS&I, said: “Many of us are cutting back on unnecessary spending and instead are putting a priority on saving, as saving for an emergency continues to be the number one reason for putting money aside.

“Our survey shows people are setting themselves their highest ever savings targets.”

He added that despite the high targets, savings are still “falling a long way short of [their] aspirations”.

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