27% 'raided savings for christmas'

02/02/12

By Chris Attridge

More than one in four Britons -27 per cent - dived into their savings to help cover the cost of Christmas, a study has revealed.

And nearly one in 10 used their nest eggs to cover the entire cost of the festive season.

The research, by BM Savings, found the most common reasons for raiding savings over the past three months were overspending on current accounts and emergency home or car repairs.

But the study also highlighted a trend of "financial prudence", with the average amount saved standing at £920, up on the previous quarter, and the amount taken from savings down 14% to £1,426.

BM Savings' head of products, John Bianco, said: "This research lays bare the extent to which many have had to dip into their savings to get them through the festive period in 2011.

"The wider results of the research are encouraging, however, demonstrating that many are actually raiding their savings less, and getting to save that extra bit each month."