As inflation continues to rise in the wake of the recession, one expert has suggested that savings accounts have become increasingly important for Britons to incorporate into their finance regime.
Credit Action associate director, Joanna Parsley, said in a recent interview that it is critical for Brits to properly budget their expenditures in these continually rough economic waters. This could mean putting cash away in high interest savings accounts instead of spending cash you don’t have purchasing things with a credit card.
Ms Parsley commented that it is essential for Brits to budget properly through a close tracking of their outgoings. She also remarked that families in the UK should not be afraid to seek independent financial advice in the event that it is needed, as increases in wages have not necessarily been trending upward at the same rate as inflation.
In its recently published Family Finances Report, Aviva announced that UK households have shown a significant increase in both unsecured debt and savings activity since January of this year. Ms Parsley made note that the likelihood of budgets being squeezed yet tighter still in the next few months remains high.
In related news, a new study recently revealed that Londoners’ savings pots are bigger than those living in the regions. Personal and business bank account provider Halifax found in their research that the UK’s top 31 postcodes in regards to their savings product usage are located within London.
The Richmond upon Thames region led the pack, as its residents held an average £29,765 in their savings accounts. Another high ranking postcode was found to be Putney.
Outside of London, the AB15 Aberdeen postcode came in with a startlingly high £26,130 average, which exceeded the average Scottish savings amount by approximately 350 per cent.