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Press release

THE NS&I QUARTERLY SAVINGS SURVEY REVEALS GRADUAL IMPROVEMENT IN SAVINGS BEHAVIOUR

20 December 2006

A gradual improvement in the level of savings has shown that people are beginning to take saving more seriously, according to the long standing Quarterly Savings Survey produced by National Savings and Investments.  

The Quarterly Savings Survey has been produced on a quarterly basis since December 2004.  Its aim is to examine savings behaviour across Britain, reporting on who is saving and how much is being saved.

In Autumn 2006 the average amount saved per head per month across the GB population has grown to reach £91.82 (7.15% of average income) from an average of £81.80 in autumn 2004, this is the highest value ever recorded.   

	Average GB savings per head per month	Amount saved as % of average income
Autumn 04	£81.80	6.7
Autumn 05	£89.11	7.16
Autumn 06	£91.82	7.15

Following stagnation in the number of regular savers over the past four quarters (at 55% of the population), regular savers have jumped to an all time high from 54% in autumn 2004 to 58% in Autumn 2006, as a result of savers making the most of attractive interest rates.   

	% of GB population who are regular savers	Amount saved by regular savers per month
Autumn 04	54	£163.40
Autumn 05	55	£174.43
Autumn 06	58	£170.06

 
However the rise in interest rates is a double edged sword for savers with debt, and may be blamed for the decrease in the actual amount saved by regular savers.  In the last year this has fallen from £174.43 per month in autumn 2005 to £170.06 this autumn.  In spite of this it is encouraging that those who have developed the habit of regular saving save almost double that saved per head by the total GB population.  

This decrease by regular savers has been balanced out by an increase in contribution by ad hoc savers, which has lifted savings per head to a new high.  The increase coincides with a fall in spending on the high street, with GB retail sales growing by just 0.5% in November compared to November 2005*.

Excluding pensions, the average amount people hold in savings in autumn 2006 is an average of £17,909, a considerable increase from last years average of £16,968.

Dax Harkins, senior savings strategist at NS&I, commented: 

“The increases in interest rates seen in the last quarter are good news for savers and should make saving more attractive.  The rise in overall savings levels after August’s rate rise suggests the following months may see more increases in saving, as the higher rates provide the incentive needed to get more people putting money aside.”

ENDS

Notes to Editors

* British Retail Consortium  website (www.brc.org.uk/details04.asp?id=1055&kCat=&kData=1)

‘Retail Sales Monitor November 2006: The Usual November Blues’

For a PDF of NS&I’s Quarterly Savings Survey click here or for a hard copy or further information on the statistics supplied in this release please contact the NS&I media team. A regional trend breakdown is also available.  The survey of peoples’ savings habits and likelihood to save in the future was carried out by TNS Phonebus among 3,042 GB adults aged 16+ between 1 September and 5 November 2006.

Dax Harkins is available for interview and high-resolution photographs can be supplied.  Contact the media team to arrange an interview or request photographs by e-mail.

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.

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Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Angela Mason		020 7348 9433
		angela.mason@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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