Published On: Fri, May 22nd, 2020

Savers struggle as accounts are reduced to cope with lockdown – what can savers do? | Personal Finance | Finance

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Savings accounts across the UK are struggling at the moment as consumers get used to a new normal. Coronavirus has forced families to adapt to strict lockdown rules and their income and employment has taken a hit as a result.

A recent survey of 2,000 adults conducted by finder.com has illustrated just how dire the situation has become for some people.

The survey was designed to be illustrative of the UK at large and it included representative quotas for gender, age and region.

The survey revealed that over a third (36 percent) of respondents reported that they had to use some of their savings since the lockdown began.

On average, £1,420 of savings over the first seven weeks of the lockdown was used, which is equivalent to a fifth of the UK’s average savings pot (21 percent).

According to the figures collated by finder, the average savings amount per person across the UK currently stands at £6,760 and the majority of us have at least some money put away in the bank.

READ MORE: State pension: Payments can’t be boosted if these benefits are claimed

On an averaged basis, this would mean that £4,700 in savings would be needed as a minimum for emergencies and according to finder’s analysis, but 39 percent currently have enough to cover themselves for three months if their income stops.

Jon Ostler, the CEO at finder.com, commented on the troubling findings: “During this uncertain time, having a buffer of savings may be more important than ever.

“While losing your job isn’t nice to think about and may feel like a distant reality, we can never predict what is around the corner and having some savings in the bank is a good idea.”

Fortunately, he went on to provide a number of tips for how consumers can boost their savings:

Save away money that you aren’t spending

“There are often simple ways to cut costs.

“Cancel subscriptions that you will not really be using and see if you’re overpaying on broadband, mobile or energy bills.

“Plough that money into your savings pot and place the money you are currently saving on not going out or travelling into your savings as well.”

Making sure your savings are in the right place

“If you have savings, ensure they are sitting in a current account with an interest rate, a savings account or premium bonds.

“Even though interest rates are at a record low, putting your money to work is better than it and leaving it in where it cannot grow.”



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