Britons are raiding their savings accounts less often as they cut back on luxuries, according to a new study.
Research by the Birmingham Midshires found that the amount taken out of savings accounts in the last three months fell by £204 to £302 when compared to the same period of last year.
It also found that just nine per cent of people withdrew cash from their savings account to buy luxuries, compared with 39 per cent in the equivalent three months in 2008.
Tim Hauge, director of savings and investments at the Birmingham Midshires, said: "Those who are raiding their savings are doing so for essential reasons such as emergency repairs and increased utility bills rather than spending on luxury items."
Yesterday, Andy McQueen, savings director at Nationwide, called for more people to build up a nest egg.
He explained that having money in a savings account is vital during hard times as it gives people something to fall back on.
Brits dipping into savings less, study finds
Financial Services > Savings > Savings and Investments News
Brits dipping into savings less, study finds
Wed, 11 Feb 2009
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