03 August 2012: Whether it’s saving for a rainy day or saving for your dream purchase, most of us probably agree that putting some money away in savings is a good thing. But the difficult economic environment has somewhat changed the way we think about and deal with our money.
According to Mintel, half of UK adults say that the main reason why they are unable to save is the lack of funds after paying bills and expenses*. However with almost 60%** of us believing it pays to save, how are we going about doing this in spite of the economic pressures?
So why save?
Some of us save for a holiday or a new car, or ‘just in case’. Mintel research suggests the top two reasons why people save in the current climate are for emergencies and the security of knowing that money is there*. Interestingly, it seems a healthy saving habit isn’t necessarily related to whether we have a high income, but more likely to be down to our lifestyle choices*. Whatever your preferred lifestyle or priorities may be, being disciplined about saving could prove important when income is squeezed be it due to pay freezes or inflation.
How to save?
Whilst there has been much talk and advice around ways to save and make more of your money, almost half of us** don’t feel we fully understand the different types of savings accounts on the market. So it helps if you’re clear on your own need. For instance, if you are saving for a particular purchase, it might help to set up a regular standing order from your current account into your savings account. Some savings accounts are designed for saving regularly, for example Nationwide’s Regular Saver, would allow you to make deposits of up to £1,000 a month. With every bit making a difference, you can track your progress and keep focused on your end goal. Or to avoid being taxed on your savings, you might consider a cash ISA. If, for instance you like the convenience of managing your savings online, Nationwide’s Online ISA may be of interest. Either way, if you’d like to find out more about the options available through Nationwide, we’ve made it easy for you through our Savings Selector tool.
Source: *Mintel Research, ‘Consumers Saving and Investing in the UK’, January 2012;
Source: **Study by Atomik Research, conducted for Nationwide, June 2012