Savings down by a third

12 November 2008 12:23am

The amount of money Britons are saving has fallen by more than a third during the past three months, research showed.

It revealed that people withdrew more than they set aside,.

The average person saved £339 in the three months to the end of October, well down on a savings level of £516 during the previous three-month period, according to Birmingham Midshires.

At the same time, Britons withdrew an average of £343 from their savings accounts. While it was less than the £434 they took out during the three months to the end of July, it was still more than they had paid in.

There was also a shift in what people were using the money they withdrew for. They were far more likely to use it to pay for day-to-day living expenses or emergencies, rather than treats such as holidays and entertainment.

One in four said they dipped into their savings to pay for emergency home or car repairs, while 19% claimed they needed the money because they had overspent on their current account.

Around 16% said they used their savings to pay bills, while 14% needed the money to pay off debt.

But 19% still said they had used their savings to pay for a holiday or weekend break, down slightly from 23% during the previous three months.

© The Press Association