People Saving Hits 16 Month High

• News
• Published: 08 Feb 2010 in Money and Savings

Research has shown that the number of people saving reached a 16-month high last month.

Nationwide said that around 79% of people put money aside in a bid to honour New Year's resolutions to sort out their finances. It was the highest level since September 2008.

Backing this up was the statistic showing the number of people with no savings at all had fallen from 25% in December to 21% in January. In addition to New Year's resolutions, the group said the rise in VAT at the beginning of this year could also have seen people spend less and save more.

Andy Hutchinson, head of savings at Nationwide, said: "Although there is still a lot of room for improvement, it is nonetheless encouraging to see a rise in the number of savers in January 2010. This is despite the continued low interest rate environment - the last time there were so many savers, the Bank of England base rate was 5.00%.

"I think this shows that good returns are still available, especially for those who are willing to lock part of their savings into longer term bonds."