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Press release

HOW WILL YOU COPE IN AN EMERGENCY?

16 March 2005

Two-thirds of Brits struggle to access their savings in times of need

Over two-thirds (64%) of Brits who have needed to access their savings for an emergency have trouble getting to their money, according to research from National Savings and Investments, the government-backed savings provider.

Whether it is for unforeseen house-repairs or due to a sudden change in employment, one in five Brits confess dipping into savings to cope with an emergency. Yet worryingly, most face a range of problems, from too much red tape to penalties for early withdrawal. Without an easily accessible emergency fund many savers risk being caught short in their times of need.

Left out on a limb

When needing money in an emergency the most frequent problem facing savers was the lack of choice of where they could access their money.  Nearly one in two (45%) were restricted by the need to visit a branch to withdraw money – facing the inconvenience of limited opening hours, long queues and finding a branch nearby when urgently accessing their savings.

Top five access problems

	Problem
1.	Had to go into a branch to withdraw money
2.	Could only withdraw a limited amount
3.	Too much ‘red tape’
4.*	Had to wait longer than a week for the money
4.*	Unable to contact provider outside working hours

Many people were also restricted by too much red tape (22%) or a long wait for their money (21%). Surprisingly, one in five (21%) was unable to contact their savings provider outside office hours, adding to their stress.

However, some savers are already wising up to these problems and have chosen an accessible home for their some of their savings. A small but significant 36% were unaffected by any of these restrictions.

Most in need

Brits aged 25-34 years-old are the most likely to raid their savings accounts in an emergency – almost one in three (28%) has needed access in the past compared to a national average of one in five (19%). With perhaps less money in their current accounts due to mortgages, weddings or other new responsibilities, people in this age bracket are most in need of good access to their savings.

Those under 25 or over 65 are the least likely to dip into their savings in a crisis. However, more than one in ten (13%) of these age groups have still required easy access to savings for an emergency.

Do you have Easy Access?

John Prout, NS&I sales director, said: “It is recommended you have at least three months salary in an emergency fund to cover any unforeseen circumstances. With many of us admitting to raiding other savings we should consider if we have enough put aside.

“You never know when you might need easy access to your savings to cope with an emergency. By having a lump sum in a savings account which gives you easy access to your money, there will be one less thing to worry about if disaster strikes.”

ENDS

Notes to Editors

The National Savings and Investments survey among 1,014 adults was conducted by TNS via PhoneBus, 21-23rd January 2005.

Have you ever needed easy access to your savings for an emergency? 

	Total	16-24yrs	25-34yrs	35-44yrs	45-54yrs	55-64yrs	65+yrs
Yes	19%	13%	28%	20%	22%	19%	13%
No	76%	77%	69%	76%	74%	75%	86%
I don’t have savings	4%	10%	2%	3%	4%	7%	1%

If yes, did you experience any of the following problems? 

Problem	% savers affected
Had to go into a branch to withdraw the money	45%
Could only withdraw a certain amount (not as much as you needed)	27%
Too much ‘Red Tape’	22%
Had to wait over a week before you could access your money	21%
Were unable to contact the organisation outside normal working hours	21%
There were penalties for withdrawing money early	14%
None of the above	36%

1. National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments products to 26 million customers.  All products offer 100% capital security, because they are backed by HM Treasury. 

2. NS&I announces the success of its new instant access savings account, the Easy Access Savings Account with over 300,000 customers and more than £700 million invested in its first year. Launched on 29 January 2004, the new card-based account offers a wide variety of instant access options, competitive and consistent interest rates and 100% capital security.

Current interest rates

Account balance	Easy Access Savings Account*
£100 – £999	2.00%
£1,000 – £4,999	3.50%
£5,000 – £9,999	3.80%
£10,000 – £24,999	4.05%
£25,000 – £49,999	4.30%
£50,000 +	4.55%

* gross/AER rates

3. NS&I is the exclusive sponsor of The Classical BRIT Awards, the UK’s premier classical music awards show, at the Royal Albert Hall on 25 May 2005.

4. We have a number of spokespeople available for interviews via our ISDN line: 020 7602 4522.

5. Further information on NS&I, including press releases and product information, is available on the website at www.nsandi.com. You can also contact the NS&I Media Team.

Elen Thomas:                020 7348 9654               elen.thomas@nsandi.com
Mark Brooks:                020 7348 9301               mark.brooks@nsandi.com
Jonathan Akerman:        020 7348 9433               jonathan.akerman@nsandi.com                       
Rabia Bapu-Jones          020 7348 9449            
rabia.bapu-jones@nsandi.com
Fax:                              020 7348 9755

Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.

The numbers below are for media use only. Customers wishing to contact NS&I can find details here.

Gareth Headon		020 7348 9494
		gareth.headon@nsandi.com
Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Monica Del-Villar		020 7348 9654
		monica.del-villar@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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