Despite the economic gloom people are still saving and some, particularly those in the North East, are choosing to save more, according to a survey commissioned by Standard Life. (1) 

The pension provider wanted to know what impact the government’s austerity measures were having on saving. Its YouGov poll found that 41per cent of Britons saved the same amount of money or more in the past year compared with the same period in the year before. The keenest savers were the 25 to 35 year olds with more than half (51%) setting aside the same amount or more. (1) 

Regionally, the North East (48%) is leading the field in continuing to save during the nation’s collective belt-tightening. In the West Midlands and the South West only 36 per cent of those surveyed were saving the same or more. (1) 

John Lawson, Head of Pensions Policy at Standard Life, said: “It is encouraging to see that even when the public is faced with increasing financial pressures, with inflation pressures and rising utility costs to name but a few, they’re taking the sensible approach by saving their money”. (1) 

As reported by New Model Adviser, the savings habit is working well for National Savings & Investments (NS&I) where strong demand for index-linked savings Certificates increased sales in the three months to the end of June from £2.5billion in the same period in 2010 to £3.8billion. (2) 

The premium bond provider, which is an Executive Agency of the Chancellor of the Exchequer, re-introduced its popular savings certificates in May. It was forced to remove them from the market in July 2010 after demand threatened its financing target. (2) 

It is important to shop around for the best deal on savings accounts and a savings calculator can help. There are a number of these in the market that allow you to insert how much you want to save, enter the interest rate on your current savings account and see whether there is a better option. ISAs are a tax efficient way of saving and are offered in cash or stock and shares options. 

Sources 

(1) Standard Life press release, 18 July 2011 

http://ukgroup.standardlife.com/content/news/new_articles/2011/sl_resear...

(2) New Model Adviser report, 14 July 2011 http://citywire.co.uk/new-modeladviser/nsandi-reports-3-8bn-sales-after-...