Published: 26 September 2022
Darlington Building Society is proud to be supporting the inaugural UK Savings Week, which runs 26 September – 2 October 2022. With a third of people relying on their savings to get by, UK Savings Week aims to help those who can get into a better savings habit.
The rising cost of living is putting significant pressure on many households’ finances. Over the coming years, UK Savings Week aims to get people engaged with saving, whether they are already savers, have no savings but could save a little, or may be unable to save right now but may be able to when times improve.
New research from the Building Societies Association (BSA), reveals that one in seven people (13%) have no savings at all and a third (33%) of savers saying if they lost their income they wouldn’t have enough savings to cover their living costs for even just one month.
In the North East, 19% of people said that they were not at all confident, or were completely unable to save, £10 extra a month for the next year.
Over a third (36%) of savers said that they are relying on their savings to get them through the cost-of-living crisis and more than half (55%) have reduced the amount they used to save, meaning financial resilience is diminishing every day for many people. More worryingly, over a third (35%) have stopped saving altogether as a result of the crisis.
Creating a regular habit is often the best way to start saving, even if the amount saved flexes depending on other expenses in the month.
With so many people currently relying on their savings, it’s probably never been more important to find the best deals available, however there is currently more than £260 billion1 in accounts paying no interest. This is not surprising as the research found that around one in four (23%) savers don’t check the interest rate paid before they open an account, with a third (33%) never comparing the rate on their savings to other accounts available.
There are however some savvy shoppers out there, with one in three (30%) saying they have switched to accounts which provide cashback rewards, bonuses or have lower fees.
Andrew Craddock, chief executive of Darlington Building Society said:
“Darlington Building Society is proud to be taking part in the first UK Savings Week. We are supporting people to make their money work harder – from better budgeting right through to making sure their savings are earning as much interest as possible for them.
“Fresh from Festival of Thrift, where we held eight budgeting workshops for festival-goers, we want to help people’s money work as hard as possible, however much they are able to save.
“To help some of the most financially vulnerable in our local area, we recently supported a local credit union to enable it to continue its lifeline work. This protected its customers from using alternative means of finance such as loan sharks.
“But our main focus is always our members. We encourage them to book a savings review at their local branch, to make sure that they are getting the most from what they do put away. We constantly review our savings accounts rates, terms and conditions to ensure they are meeting the needs of our member’s.
“Plus, we continue to invest and partner with local organisations to help as many people as possible through these trying times.
“We know that saving isn’t a viable option to everyone right now, but we do encourage those who are able to, to put away what they can, when they can. Even if that isn’t every month.”
Iona Bain, financial commentator and founder of Young Money said:
“Having a regular savings habit can provide a safety net when things go wrong. Even a small rainy-day pot to fall back on when an unexpected bill lands, can provide security and reduce worry in difficult times.
“But savings are not just for the unexpected bad stuff. A growing savings pot can help achieve future dreams and aspirations, whether that’s saving for a special occasion, a new car or a new home, or to cover a regular expense such as Christmas presents.
Andrew Gall, head of savings and economics at the BSA commented:
“Whilst the midst of a cost-of-living crisis might seem like an odd time to launch activities encouraging good savings habits, those who are able to save can benefit from building their resilience to future shocks.
“When, how and how much people save will be different for everyone and UK Savings Week aims to help individuals to save their own way, when they can. And for those who are already savers, UK Savings Week aims to help people think about making most the of their savings.”
Visit the UK Savings Week website: https://uksavingsweek.co.uk/