Briton’s savings at record low, by Curtis Parker
Posted on July 3, 2017
According to The Office for National Statistics (ONS), the proportion of UK residents’ disposable income that goes into savings has fallen to a record low.
During the first quarter, the ONS has reported that the savings ratio – which measures how much money individuals are putting away out of their household income – fell to 1.7%, down 3.3% from the previous three months.
Despite the savings ratio falling for the third consecutive quarter, the economy grew by 0.2% from January to March. However, this still shows signs of household budgets being squeezed as it fell by 0.5% from the final quarter of 2016 (0.7%).
Earlier this week, ‘Moneyfacts’ said that savers have faced a “never-ending battle” to get a decent return on their cash over the past few years with nine out of 10 easy access savings accounts paying interest of less than 1%, and a third of such accounts failed to even pay a rate matching the current Bank of England base rate of 0.25%.
Savings rates are failing to keep pace with the rising cost of living, with inflation at a rate of 2.9%.
Get Britain saving!
Here at Sheffield Mutual we like to make saving easy and accessible
Our most popular plan is the Tax Exempt Savings Plan – you can start saving from as little as £5 per month and choose a term between 10 – 25 years so that your plan matures at a time of your choice.
TESPs are also popular with parents and grandparents who are looking to build up a lump sum for a child to help out with university costs, a new car, a special birthday or even a deposit for a home.
This plan could be a great place to start and helps get you into the habit of saving regularly without the temptation of “dipping in” which is normally the case with an easy access savings account!
You can find out more here.
This blog provides generic information and opinions of the writer and should not be relied upon for making investment decisions. No advice has been provided by Sheffield Mutual. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouchedfor.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand. Any reference to taxation is based on the writer’s understanding of current tax legislation and practice, which could change in the future.