More Britons resort to raiding their savings

Around 36 per cent of people admitted to raiding their savings during the three months to October, withdrawing an average of 2,130 each, according to Birmingham Midshires.

The sum was two-and-a-half times more than the 848 that people managed to save during the period.

It was the second quarter running that consumers took more than twice as much out of their savings accounts as they paid in, after they withdrew 1,870 during the previous quarter but saved only 764.

But one of the main reasons people gave for tapping into the money was to pay for a holiday or weekend break, suggesting they may simply have been accessing money that they had set aside during the rest of the year to pay for their summer getaway.

Overall, 21 per cent of customers said they withdrew savings to pay for a holiday, while 22 per cent said they needed the money for emergency car and home repairs.

But 12 per cent said they had needed to use their savings to lend money to family or friends, while 11 per cent admitted they had used it to pay a higher than expected credit card bill, and the same proportion had overspent on their current account.

John Bianco, head of savings products at Birmingham Midshires, said: "The increase in raiding in the last quarter was mainly down to Britons heading off to sunny shores, which is hardly surprising during the summer months.

"This shows that savers are planning ahead to pay for their summer fun.

"It is also encouraging to see people are putting more away in their savings pot compared to last quarter."

The main reason people gave for saving was setting aside money for a rainy day, at 24 per cent, followed by saving for a holiday at 23 per cent, and setting aside money for their retirement or Christmas, both at 12 per cent.

One in 10 people said they were putting away money towards a deposit for a house and 10 per cent were saving for a car.

People in Scotland increased their savings levels the most during the quarter, depositing an average of 1,381, compared with 833 three months earlier.

But those in the Midlands saved the least at just 615, down from 784 during the previous quarter.

One in four in Wales said they did not know how much they had saved, suggesting they are not keeping track of their saving and spending.