As cost of living rises, Britons dip into savings

| September 4, 2007 | 0 Comments

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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