Financial experts recently discovered that many UK consumers were quite keen on using their savings accounts in order to facilitate their spending last Christmas.
Lloyds subsidiary, BM Savings, recently published the findings of a research study that revealed the extent of festive period spending in regards to savings product use. The study found that on average approximately 23 per cent of holiday spending was comprised of funds from a savings product like an ISA or a fixed rate bond.
The survey also discovered that just over one out of every five consumers actually had no available savings to use in order to contribute to the cost of holiday-related spending. Additionally, one out of every ten respondents remarked that they had been saving consistently throughout the entirety of last year specifically towards spending at Christmastime.
BM Savings products head, John Bianco, commented on the findings. Mr Bianco stated that he was encouraged to see that savers engaged in long-term planning activity and have begun the new year on a confident footing.
In related news, Sainsbury’s has recently launched two new savings products; two fixed rate bond deals.
Sainsbury’s new one-year fix comes with an annual equivalent rate of three per cent attached. Its three-year term boasts a increased rate of four per cent. Both deals permit a single deposit ranging from £5,000 to as much as £50,000.
Sainsbury’s Finance savings head, Helen Cook, stated that she was anticipating a significant level of demand for the two new accounts. She attributed her confidence to the competitive nature of the accounts in regards to their high rate of return.
Despite Ms Cook’s confidence, experts say that many UK consumers are reticent about saving due to the rapidly increasing inflation rate, which is currently over two percentage points higher than its 2 per cent government target.