Savings were put on hold for Christmas

Nationwide’s Savings Index for December reveals a decline in the number of people putting money aside into savings accounts.

A quarter (25%) of those polled by Nationwide admitted to saving nothing during December, a rise of one percentage point compared to November.

Meanwhile, 45% said they currently put money aside regularly into a UK savings account. This is the lowest percentage since the Index began in May 2008.

Overall, the Savings Index dropped 4 points from November, down to 83.

Nationwide said savings may have been less of priority in December as consumers took to the high street to buy Christmas gifts.

“December is clearly a busier month for retailers, so there is no surprise that the importance of saving decreased in the run-up to Christmas,” said Andy Hutchinson, Nationwide’s head of savings.

The VAT increase on 1st January 2010 may also have encouraged consumers to spend more in December, Hutchinson said.

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