Press Release

THE NS&I QUARTERLY SAVINGS SURVEY REVEALS GRADUAL IMPROVEMENT IN SAVINGS BEHAVIOUR

20 December 2006

• 12% rise in savings,  from £81.80/head (sep-nov 04) to £91.82/head (sep-nov 06)
• Amount saved as a proportion of income remains constant  at 7.16% in Autumn 2005 and 7.15% in autumn 2006
• Regular savers  increases from 54% in 2004 to 58% of population
• The full report can be obtained from National Savings & Investments - Quarterly Savings Survey or by calling 020 7348 9449

A gradual improvement in the level of savings has shown that people are beginning to take saving more seriously, according to the long standing Quarterly Savings Survey produced by National Savings and Investments. 

The Quarterly Savings Survey has been produced on a quarterly basis since December 2004.  Its aim is to examine savings behaviour across Britain, reporting on who is saving and how much is being saved.

In Autumn 2006 the average amount saved per head per month across the GB population has grown to reach £91.82 (7.15% of average income) from an average of £81.80 in autumn 2004, this is the highest value ever recorded.

Following stagnation in the number of regular savers over the past four quarters (at 55% of the population), regular savers have jumped to an all time high from 54% in autumn 2004 to 58% in Autumn 2006, as a result of savers making the most of attractive interest rates.

	% of GB population who are regular savers	Amount saved by regular savers per month
Autumn 04	54	£163.40
Autumn 05	55	£174.43
Autumn 06	58	£170.06

However the rise in interest rates is a double edged sword for savers with debt, and may be blamed for the decrease in the actual amount saved by regular savers.  In the last year this has fallen from £174.43 per month in autumn 2005 to £170.06 this autumn.  In spite of this it is encouraging that those who have developed the habit of regular saving save almost double that saved per head by the total GB population.  

This decrease by regular savers has been balanced out by an increase in contribution by ad hoc savers, which has lifted savings per head to a new high.  The increase coincides with a fall in spending on the high street, with GB retail sales growing by just 0.5% in November compared to November 2005*.

Excluding pensions, the average amount people hold in savings in autumn 2006 is an average of £17,909, a considerable increase from last years average of £16,968.

Dax Harkins, senior savings strategist at NS&I, commented: 

"The increases in interest rates seen in the last quarter are good news for savers and should make saving more attractive.  The rise in overall savings levels after August's rate rise suggests the following months may see more increases in saving, as the higher rates provide the incentive needed to get more people putting money aside."

Notes to Editors

* British Retail Consortium  website (www.brc.org.uk/details04.asp?id=1055&kCat=&kData=1)
'Retail Sales Monitor November 2006: The Usual November Blues'