Money savvy Brits are saving over £300 a month - with over £12,000 in savings
Four in five Brits reckon they are very – or at least fairly – savvy when it comes to their finances, with the average adult having put away over £12,000 in savings. A poll of 2,000 adults found that six in ten are trying to put away as much as they are able at the moment, “just in case” – with building up a rainy day fund cited as the top reason for saving.
Some of the top ways Brits are setting aside money for savings include cutting back on luxuries so they can save the cash instead (39%), and setting a budget to make sure they have spare money each month for savings (35%). As a result, the average saver manages to add £306 a month to their savings pot – equating to 15% of their salary.
Young adults aged 25-34 are saving the most, typically tucking away just under £490 a month, while over-65s save just £228 monthly – although this older age group are likely to have the most in savings to begin with, an average of £17,189 per person. A thrifty one in ten even manage to save over £1,000 a month – although it emerged women typically have £3,000 less in savings than men.
However, nearly one in ten (7%), of those polled, are struggling to put away any money at all – and 16% of those who do have savings, say they are not in a position to add to their pot on a regular basis. Eight in ten (79%) dream of having a financial buffer to protect them – but 31% of all savers have never moved their money to accounts with higher interest rates, meaning they are missing out on extra cash as these figures rise.
The research was commissioned by HSBC UK, which is offering free financial health checks and webinars to provide personalised guidance for customers and non-customers alike – including the opportunity to book a call with a financial wellbeing consultant for additional support.
Savvy woman fed herself for less than £1 per day using items from Tesco
Pella Frost, head of everyday banking at HSBC UK, said: “Despite the challenging economic environment, these results suggest Britain’s savers have developed some healthy savings habits. If you’re lucky enough to have built up some savings, it pays to be savvy, and the pounds in people’s accounts could be working harder by being clever with your banking, or locking your money away for longer.
“As interest rates are rising, make sure you know the terms of your savings accounts, and keep an eye on the market to ensure you are getting the best interest rate you can.
“The results do show a number of people currently have no savings at all, or are struggling to put aside anything from month to month. We don’t underestimate the financial challenges many are currently facing, and we’re here to help. It’s important that customers understand they can talk to us about their money worries without judgement, and without it affecting their credit rating.”
But nearly one in ten are struggling to put any money into savings at all (SWNS)The research found that half of savers put any spare cash they have at the end of the month into savings, rather than spending it – but the average adult reckons they could save an extra £264 a month if they had a better budgeting system in place.
And holidays and retirement are other common reasons for building up a savings pot. Some 47% of those polled, via OnePoll, also feel there needs to be more education on savings, investments, and interest rates, to help people make the most of their hard-earned cash.
Just 44% feel they have a good grasp of how interest rates work, and only 34% are confident they know how to get the best return on their money.
Pella Frost, from HSBC UK, added: “It seems many people are missing out on some cash by not being on top of what their savings are doing. Keeping savings in your current account is helpful in terms of access, but that can be a double-edged sword – making you more likely to spend when you don’t need to.
“The proliferation of digital technology means you don’t need to keep cash in a jar at home anymore – you can move it around easily within your banking app and online with ease, getting spending insights to help you budget, and picking up interest to give your savings that extra boost.”
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