14/03/12 - One in five Brits has no savings
With many consumers continuing to feel the effects of the wider economic pressures, new research by The Co-operative Bank reveals that one in five Brits (20%) actually has no savings set aside for life’s emergencies.
The findings show that in the event of an emergency, those Brits without savings would rely on other forms of borrowing to make ends meet. Over half (53%) said they would turn to credit cards, while borrowing from friends and family (42%) and using an overdraft (26%) were also popular choices.
Perhaps unsurprisingly young people are the most likely age group to struggle to save, with those under 35 years old three times more likely than adults over 55 years old to have no savings.
The research also highlights the most common types of emergencies that lead consumers to dip into their savings. The most common reasons include unexpected bills (53%), household emergencies, such as a boiler breakdown (46%), and loss of employment (45%).
However the findings also reveal that 1 in 20 people would access money they had set aside for emergencies to pay for hair appointments, cosmetic surgery and even to buy clothes.
Zack Hocking, Head of Savings at The Co-operative Bank, says: “Getting into the habit of putting a small amount of money aside each month can be a lifeline should the unexpected happen. Money might seem tight but by looking at your outgoings it may be possible to make small and regular savings."
“There are many savings products on the market, and people should make sure they look for an account that suits their needs. For people who may need to dip into their savings, should the unexpected happen, but do not want to lose out on any interest, we have developed a Select Access Cash ISA. This provides the flexibility to make two withdrawals a year, whilst benefiting from tax-free savings at a higher rate.”
The Co-operative Bank has launched a wide range of new ISA savings products including an 18 month fixed rate ISA. More information can be found at www.co-operativebank.co.uk/savings
Notes to Editors:
Survey conducted for The Co-operative Bank by 72 Point with a representative sample of 2,000 UK adults. (February 2012).
|TOP 10 REASONS TO ACCESS EMERGENCY SAVINGS|
|Household emergency – e.g. boiler breakdown, water leaks||46%|
|Redundancy / Loss of employment||45%|
|Personal health problems||29%|
|Death in family||29%|
|Pet health issues||19%|
|Splitting up with partner||14%|
For further information please contact
Catherine Turner / Lauren Hoult
The Co-operative Banking Group Press Office
Tel: 0161 903 3833 / 3822
Email: firstname.lastname@example.org / email@example.com
About The Co-operative Banking Group
The Co-operative Banking Group, formerly known as The Co-operative Financial Services, is the banking and insurance arm of The Co-operative Group, which is the world’s largest consumer co-operative with around six million members, over £14 billion turnover, and core business interests in financial services, food, travel, pharmacy and funeral care. The Co-operative Group has over 5,000 retail trading outlets.
Following the merger with Britannia on 1 August 2009, the organisation is one of the largest and most highly diversified mutual businesses operating in both retail and corporate markets.
As part of The Co-operative Group, the business is characterised by its unique ethical and member reward policies and very high levels of customer advocacy.
The Co-operative Banking Group has £70 billion in assets, 12,000 staff and nine million customers. It has over 300 high street branches, 20 corporate banking centres and major presences in Manchester, Leek, London, Plymouth, Skelmersdale and Stockport. It is the only mutual organisation that enables its members to earn financial rewards for the products they hold, as well as giving them the opportunity to have a say in how the business is run.