People are feeling more confident about their savings with more than two-thirds managing to put something aside over the past year, according to a report this week.
According to research from Lloyds Bank, the majority of people are growing in confidence, with 68% of those surveyed having saved in the last 12 months. Were you one of them?
Lloyds Bank said 44 per cent of people it surveyed managed to save at least once a month – up from 37% in the last three months of 2014 – and almost one in 10 had been able to put aside more than £1,000 in the last month alone.
This doubles to 18% for those who have saved £500 or more, showing that many people are truly taking saving seriously.
The top reasons people were saving included financial security (60 per cent), out of habit (44 per cent) and for a short-term goal, such as a holiday or new car (43 per cent).
Philip Robinson, savings director for Lloyds Bank, said: “We are seeing a shift in confidence when it comes to people’s ability to save.
“For people who may not be as confident with their current savings habits, it’s important to try to save a small and regular amount each month. This can help to build a strong savings pot over time, which can be increased as circumstances improve.”
Of those who haven’t been able to save recently, 64% haven’t had enough money left to do so, but 30% used any extra income to pay off debt instead.
This is still a wise decision – the interest you’ll be paying on credit cards, for example, will far outweigh anything you’ll earn in a savings account – and it seems many people realise that fact, with 68% saying that they would rather pay off any debt they owe before saving.
Additional figures from HSBC show that it’s younger savers who are leading the way. Those aged 18-30 are saving the highest proportion of their income (24%) compared with other age groups, and they’re willing to sacrifice luxuries in order to do so. Perhaps unsurprisingly, building up a house deposit was the top reason to save among this age group, with 35% saving for that purpose.