Brits Forsake Savings Accounts
15/07/2008
Savings accounts are plummeting in popularity as people struggle to make ends meet every month.
A new study from Nationwide Building Society claims the credit crunch has deterred Brits from putting money away for the future. The research says that if economic conditions in this country continue to worsen, most people will find it difficult to cope without any savings to fall back on.
The study's findings showed that in May, 49% of consumers thought saving for the future was important. One month later, that figure had dropped to just 26%.
A staggering 61% of people are worried they are not saving enough money, and 32% don't think they will be able to save as much as they need to in 6 months time.
Matthew Carter, director for savings at Nationwide, said: "Our latest research on consumers' propensity to save is concerning. A sharp decrease has been seen in the store people put on saving and, if this decline continues, there will be trouble ahead if consumers do not put money aside."
Carter blames the rising cost of living for the shift in people's priorities: higher food and fuel costs mean people have less money to put into savings accounts.
The study did reveal some positive findings however: 46% of people are managing to save some money on a regular basis.
A new study from Nationwide Building Society claims the credit crunch has deterred Brits from putting money away for the future. The research says that if economic conditions in this country continue to worsen, most people will find it difficult to cope without any savings to fall back on.
The study's findings showed that in May, 49% of consumers thought saving for the future was important. One month later, that figure had dropped to just 26%.
A staggering 61% of people are worried they are not saving enough money, and 32% don't think they will be able to save as much as they need to in 6 months time.
Matthew Carter, director for savings at Nationwide, said: "Our latest research on consumers' propensity to save is concerning. A sharp decrease has been seen in the store people put on saving and, if this decline continues, there will be trouble ahead if consumers do not put money aside."
Carter blames the rising cost of living for the shift in people's priorities: higher food and fuel costs mean people have less money to put into savings accounts.
The study did reveal some positive findings however: 46% of people are managing to save some money on a regular basis.
