Santander reveals rise in savings account activity

Britons are showing a greater propensity to place money into savings accounts.

An increasing amount of money is being placed into savings accounts.

The latest Snap Shot research from Santander shows the amount of cash being set aside each month have risen by about one-third (34 per cent) over the past 12 months.

In March 2009 some £163 was being tucked away into such UK accounts, however this has now risen to £219. Over the last year a total of £59.4 billion has been saved.

More than 28 million people currently have cash savings with the average amount standing at £39,000. However, it appears men are more receptive to make preparations for the future. The average male has £47,000 tucked away, while the majority of women typically have £31,000 put away.

Reza Attar-Zadeh, director of savings and investments for Santander, states: "In 2009 our Snap Shot research showed a gradual rise in the amount that people were saving each month with the latest results highlighting that this trend looks to be continuing in 2010. There's no denying that last year was financially challenging so it's great to see that people are continuing to plan ahead and build up that all important savings pot."

But consumers are reminded that "it's never too late" to begin saving and putting a small amount side each month can make a significant difference to their financial standing in the long term.

However, saving account activity looks set to rise even further, with 23 per cent of people claiming they are looking to set more money aside over the next six months.

Such figures come as 41 per cent of Britons claim they are not currently saving. Just under a quarter (23 per cent) state they have no money set aside whatsoever.

Meanwhile, Nationwide reported 19 per cent of Britons saw February as a good time to save, a rise of three percentage points from those who felt the same away about January. Around four-fifths of those questioned described themselves as regular or occasional savers, the highest amount recorded since May 2008.

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