UK savings raided to make ends meet
Wednesday 12th November 2008, 9:25PM GMT.
Britons are cutting the amount they save, but they are yet to raid their savings.
The amount people put to one side was down 34 per cent to £339 in the three months to October 2008.
However, the amount people are withdrawing from their accounts was down – research from Birmingham Midshires.
Brits raided just £343 from their savings in the three months to October 2008, compared with £434 over the previous three months.
Tim Hague, director of savings at Birmingham Midshires, said: ” Britons are taking a responsible attitude to saving in a difficult market climate.
“While there is clearly pressure on disposable income, people are trying to preserve the buffer of a savings pot. Making deposits where possible and having existing savings remain critical in the months ahead.”
However, those dropping into their savings were doing so to make ends meet – rather than to splash out on any luxuries.
The most common reasons for raiding savings were to pay for emergency home or car repairs (26 per cent) and overspending on a current account (19 per cent).
There was also a doubling in the number of people hitting savings to cover the loss of a job and a 23 per cent rise in the number of people raiding savings accounts to cover energy bills.
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