Brits 'don't see savings as important'

24/02/2009

Britons still prefer to spend rather than save, Egg has suggested.

A report from the internet bank found that around seven in ten customers with savings have not moved their deposits to an account with higher returns over the past six months.

This is despite savings rates having been slashed recently due to a series of interest rate cuts from the Bank of England.

The credit crunch has also made the burden of debt repayments - whether for mortgages, loans or cards - heavier for many, making putting money by for the future less of a priority.

Charity Credit Action said recently that the total level of personal debt in the UK exceeds £1.4 trillion.

Meanwhile, the new Egg report found that one in seven also said that they had no savings - and had no plans to start saving in the future.

Dean Proctor, head of savings and investments at Egg, said: "Everyone knows the importance of saving, especially in these unprecedented times when it is essential to have a nest egg.

"People need to know their money is safe as well as earning a decent rate of interest."

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle, Recent Graduate Debt,

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