12 March 2024 , 09:20
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Holidays, home improvements and debt repayments are the top three reasons people are saving in 2024, according to a new survey.
However, due to living costs eating into incomes, 50% of people are saving less each month than they did before the cost-of-living crisis, according to research conducted among 2,000 people for Nationwide Building Society. The study found that 35% of savers are setting money aside for a holiday. A fifth want to make home improvements and 17% aim to clear debts.
Just over a fifth of savers were not putting their money aside for a specific purpose. The survey discovered 29% people have not reviewed interest rates on their savings accounts in the last two to six months and 23% have never compared rates on savings accounts, according to the survey carried out by Censuswide in February.
Nationwide offers a SavingsWatch service which informs customers when a better rate or new product is available. Last year, the Financial Conduct Authority (FCA) introduced a new consumer duty, requiring financial firms to put customers at the heart of what they do.
The FCA has also previously set out a 14-point action plan to ensure banks and building societies are passing on interest rate rises appropriately to savers, communicating with customers effectively and offering them better deals. Nationwide’s survey found that while 38% of people who have not compared interest rates on savings accounts said they are happy with their account, 25% said it was because they did not have enough money to save, while 15% said it was because they do not have the time to research other accounts and rates.
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Also, 15% just don't have the time to look at other accounts and their rates. Tom Riley from Nationwide, said: "Given the current cost-of-living crisis, it's no surprise that people admit they are saving less than they were before. However, for those that can save even a small amount each month, it's important they make the most of that money by keeping up to speed on the latest products and rates on offer."