Confidence returning to UK savings market
26 August 2009
Amid the mixed signals that have heralded the end of the recession comes news that UK consumers are becoming more confident about their ability to save.
The Nationwide Future Savings Index reported a rise of five points to 106, which is the highest recorded score since its inception in June 2008.
According to the study, 18 per cent of respondents believed that they would be able to save more in six months time than now, while 21 per cent believed they would save less. This is the narrowest gap between the two figures since the index began.
Ed Bowsher, head of consumer finance at lovemoney.com, noted that "confidence is returning" to the savings market.
He said: "Given the economic climate people realise that you do need to have a savings cushion [for] when times are bad.
"People look at some of the rates that they can get on some of the savings accounts at the moment and think, ''3.25 per cent, that''s not very much''. Actually, it''s not that bad, because inflation is so low."
By Gary Huddless
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