One financial expert has recently stated that Brits have been increasing their savings account activity in the post-recessionary economic period.
As the worldwide economic recession continues to plague the global economy, the need to make savings pots grow through the use of fixed rate bonds or ISAs has risen, according to online resource Cash Questions editor Annie Shaw.
Ms Shaw stated in a recent interview that a growing movement has emerged in the UK where Brits have begun to decide to take steps to safeguard their current cash instead of continuing their spending habits. The editor stated that for the majority of consumers the financial downturn has altered their spending behaviour.
According to Ms Shaw Brits are moving away from making their everyday and emergency purchases by using items such as credit cards. However she added that as many personal and business bank account providers have tightened their lending criteria many people have begun to reassess this decision.
The financial expert stated that this has led Brits to realise how essential it is to have healthy cash cushions for themselves deposited in savings products. When the economy turns sour – such as it has with our current economic slowdown – the first inclination by many is to conserve resources, Ms Shaw remarked.
The results of a slow economy are manifold. Many feel a lessening in confidence regarding their future economically, while others can feel fearful about job security and having less money to spend on necessities – things that will incline people to increase savings activity, she said.
In related news, research findings published by Defaqto suggest that savings has become more attractive to Brits than it has been in the past. This is because savings products have been offering more attractive rates to prospective customers since the Bank of England’s Monetary Policy Committee raised the base rate in March of 2009 to 0.5 per cent, the survey found.