Savings levels reach a record over summer

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SAVINGS levels in Yorkshire and North Lincolnshire rose during the summer months compared to previous years, with people in the region putting away the highest ever percentage income figure for that period.

People in Yorkshire and North Lincolnshire were saving 8.28 per cent of their incomes each month, £99 in real terms, during summer this year, according to the research by financial provider NS&I, which surveyed 260 people in the region.

But 18 per cent of people in the region admitted to not having any savings – an increase from 16 per cent in the previous quarter – and just under a quarter (23 per cent) said they do not make any savings each month – a level broadly similar to the previous quarter (22 per cent).

The research suggests that women are driving this behaviour with 26 per cent of women not making any savings each month, compared to 19 per cent of men.

Speaking about savings trends in Yorkshire and North Lincolnshire, John Prout, NS&I retail customer director, said: “Experts generally recommend that you should set at least three months’ salary aside when putting together a rainy day fund, and while over half (52 per cent) of people in the region believe this is what they should do, only 45 per cent actually put this into practice.

“Putting aside some money for a ‘rainy day’ can help protect yourself should anything unfortunate happen, and two fifths of those in the region would only use their emergency fund for that purpose.”

Meanwhile, 15 per cent of those surveyed in the region state they are more likely to save money in the next three months, whereas over a quarter (26 per cent) admitted they would be less likely.

However, 56 per cent of savers in Yorkshire and North Lincolnshire feel they have enough money in savings to cope in an emergency.

This is higher than the national average – 53 per cent – and an increase in the region from 50 per cent in the previous quarter.

It appears to be men who are driving this lift as 60 per cent feel they have enough to cope in an emergency, compared to 53 per cent of women.

Forty one per cent of people in Yorkshire and North Lincolnshire who have enough aside to cope in an emergency, would only break into their savings funds if it was a real emergency, the research found, while 39 per cent would only use their emergency savings if they were really struggling financially.

The survey found that forty five per cent of people from Yorkshire and North Lincolnshire would break into their emergency funds to fund essential home maintenance, however 22 per cent would use their emergency fund to go on holiday.

Looking at the national picture, the research showed that the average Briton saved £96 per month during the summer months – an increase from £88 in the previous quarter.

Nearly one in ten (nine per cent) of the people surveyed don’t think they need an emergency fund, according to the national research.

The survey shows that out of the 53 per cent of those who think they have enough in savings for an emergency, two fifths (41 per cent) wouldn’t touch that money unless it was a real emergency.

Thirty eight per cent would only break into it if they were really struggling financially, whereas 13 per cent admitted that they would dip into their fund whenever they wanted.

n The most recent lifestyle section of the NS&I Quarterly Savings Survey was conducted by TNS, among 2,489 British adults.