How good are we when it comes to savings?
I found an article recently on finder.com about Brits’ ability to save money. It looks like the data is from 2018 but the outlook doesn’t look great.
According to the report, 1 in 3 Brits had less than £1,500 in savings last year. That’s about 22 million of us!
The report also found that 22-29 year olds were the worst offenders with 53% having no savings at all.
It will be interesting to see if a more up-to-date article will be released to see if anything has changed in 2019.
In my previous article I mentioned just how low most normal savings accounts can be – with many cash ISAs paying around the 1.5% mark. These rates are still below the current UK inflation rate (1.7%) which effectively means your money becomes less valuable over time.
There are a few banks that offer high interest rates, but they usually require you to either lock away your money for a while or deposit a specific amount regularly.
It seems understandable why people wouldn’t want to put their money in accounts that don’t earn them anything, but does this fully explain why many people aren’t saving altogether?
What do you think?