We're saving more than we were five years ago

19 February 2014

People in the UK are saving more money than they did five years ago, a new survey has revealed.

Brits are saving £98 each month compared to £85 in 2009 and £82 a decade ago, according to National Savings & Investment's (NS&I) Quarterly Saving Survey.

The amount represents 7.76% of peoples' income, while five years ago we were saving 6.42% and 6.70% in 2003.

Fewer people are also saving for a holiday or big occasion as well, with 40% now saving up for something special, compared to 47% in 2007. A third of people (33%) are also saving to buy a house, for mortgage payments or home improvements – a drop from 41% in 2007.

The survey also revealed how our banking habits have changed, with a significant increase in people accessing their banking services online. Three-quarters of us (74%) now manage their money online, compared to just 29% a decade ago.

Conversely, in 2003 75% of us would access their accounts by visiting their branch in person but this has now dropped to just 54%.

Two-thirds of those questioned (65%) said that managing their money online saved them time while 28% said they felt more in control of their finances when they log-on.

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Julian Hynd, director of retail at NS&I, said: "Over the last 10 years we saw a switch from customers banking at branches to going online. Over the next decade, we will see smartphone and tablets emerge as a key means for money management as customers look to take more control of their finances while on the move or at a time that is convenient to them."

Patrick Connolly, head of communications at Chase de Vere, added: "It is good news that Britons are saving more of their income.

"The financial crisis has helped some people to understand the importance of having money available for a rainy day. However, the increases are only marginal and as a nation we still aren't doing enough. Too many people still don't recognise the need for long-term savings, naively believing the state or their employer will look after them in retirement, while others are simply unable to save more as their household budgets have been squeezed."

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