Almost a third of UK savers do not have enough in their account to cover three months’ salary, with people describing themselves as ‘angry’ at the current situation.
The lack of cash in the bank puts British savers behind their counterparts across Europe, according to research by banking group ING.
Its study found 32% of people in the UK had savings worth less than three months’ salary - below the European average of 36%.
Almost a quarter of people in the UK say they have no savings at all.
The survey looked at the attitudes 15,000 people have towards savings in 15 European countries and found that collectively nearly two-fifths (39%) are concerned about the effect low interest rates are having on their cash. Some 37% of people described themselves as ‘angry’ about the current savings market.
Money worries have forced almost half of people to either reduce the amount they save or withdraw money from their savings. This cash is often being spent on everyday items rather than luxury purchases.
Ian Bright, senior economist at ING, says that central bank decisions are having an adverse effect on savers.
“Lowering interest rates is a widespread technique for trying to stimulate spending in the economy, but it also has an effect on people’s savings.
“We can see that people across Europe are feeling the strain of continued low interest rates, and losing motivation to save, increasing the fragility of many households’ finances.”