Savings accounts funds drop this autumn, says research

Recently conducted research has discovered that the funds kept in savings accounts in the UK dropped this past autumn.  When compared with last year’s savings rates, there has been less funds going into savers’ chosen financial products.

The products in question range from simple savings accounts to more complex savings products such as ISAs or fixed-rate bonds.  However all  have seen less take-up in comparison to 2009 figures.

The research was undertaken by NS&I, which conducted an analysis of personal finance habits throughout the autumn months.  NS&I found that UK savers on average set aside £82.92 on a monthly basis. This figure accounts for around 6.69 per cent of the average saver’s monthly take-home pay.
When compared against 2009 figures for autumn savings, this year has come up short slightly.  Last year’s average for autumn tallied up at £88.65 a month in savings. The current figure also represents a decline in savings activity compared to the 2010 summer savings rates as well.

Many industry experts believe that the underlying cause behind the decline in savings activity can be blamed on the Christmas shopping season.  These experts believe that people had decided to spend instead of saving while Christmas rapidly approached.

NS&I spokesman Tim Mack agreed that the annual festive period can result in high expenses for many consumers.  However he did remark that if consumers are prepared to shop around for the best deals savings can still be found.

Other banking insiders instead point to the lack of profitable return on the nation’s savings products as the rot cause.  Save Our Savers spokesman Jason Riddle recently stated that many simple savings products offered by banks and building societies did little to offer a return that can compete with the inflation rate.

Currently holding at 3.3 per cent, the Consumer Price Index exceeds the after tax rate of return on nearly every simple savings product currently on the market.

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