Brits boost savings balances in 2011
UK consumers boost savings balances at mutuals by £4 billion in December last year
UK consumers significantly increased their savings balances in 2011, according to new research.
The Buildings Societies Association (BSA) has published a new report which shows that savings balances held by mutuals increased by £4 billion in December last year, compared to a more moderate rise in balances of £0.2 billion in December 2010.
Brits are also letting their nest eggs grow, with savers making a net withdrawal of £100 million in December 2011, compared to a net withdrawal of £3.7 billion in the same month of the previous year.
Adrian Coles, director-general of the BSA, expressed his delight that savings balances had increased but was cautious about the future.
He said: "It is clear that savers are still struggling to save as much as they would like, or are choosing to use spare cash to pay down debt instead.
"The fall in the rate of inflation may offer some breathing space to households but, if conditions in the labour market continue to deteriorate and wage growth remains low, household finances are likely to remain squeezed for some time to come."
Posted by Sarah Nyman
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