UK Savers Suffer Confidence Crisis

• News
• Published: 04 Jan 2010 in Money and Savings

A study of UK consumer banking trends has found that only four out of 10 people have increased the amount they save as a result of the recession.

The figure indicates a lack of confidence in the UK banking system, with a further 18 per cent claiming to have moved all of their savings to a "safer" institution and six out of 10 expressing concern at the overall security of their bank.

The survey found conflicting evidence of consumer banking behaviour. While two-thirds of those interviewed said they were more aware of their personal finances than they were two years ago, just under half said they were taking positive action to reduce the amount of debt they owe.

A further 54 per cent said they were less willing to lock up their savings for longer periods, while 21 per cent have made sure they do not have more than £50,000 deposited with any one institution.

Ian Foottit, financial services partner at Deloitte, said: "It appears that consumers are taking steps to better understand and control their finances.

"That considered, the statistics indicate a disparity between consumer action and inaction, with fewer consumers than expected initiating positive change with regards to their financial plans."