Brits saving amid economic and unemployment uncertainty

| October 11, 2010 | 0 Comments

A study by National Savings & Investments (NS&I) has revealed that Britons are topping up their savings on a regular basis, amid fears about rising unemployment and uncertainty surrounding the economy.

Government-backed NS&I, which runs Premium Bonds and a variety of savings products, said over half of Britons are regularly setting money aside.

Britons are now saving an average £87 each month - up from £85 last quarter.

According to NS&I, if savings stay at this level, the average amount saved by Britons will total just over £1,000 per year.

The findings of the study comes despite the low interest rate environment – which means interest from savings are low, which has deterred many people from saving.

However, the findings suggest that households are bracing themselves for massive spending cuts, introduced by the Government to slash the budget deficit.

The forthcoming VAT rise, as well as stubbornly high inflation, will no doubt be weighing heavily on households.

Tim Mack of the NS&I believes many are “preparing for any emergency that will require immediate access to money.”

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