Nationwide Savings Index drops to lowest ebb

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Nationwide Savings Index drops to lowest ebb

Wed 17th Jun 2009

Savers in the UK are struggling to put money aside due to the turbulent economic climate, the latest Nationwide Savings Index indicates.

The index of savers' habits has been recording data since June 2008 and has hit its lowest level since beginning - dropping by three points this month.

It also found that 26 per cent of Brits save no money at all, while 46 per cent said that they save regularly.

"Rising unemployment and falling income growth clearly make it difficult to save, while the low level of interest rates may have increased the incentive to prioritise debt reduction over deposit accumulation," said Andy Hutchinson, the building society's head of savings.

A poll conducted by Bright Grey found that seven million parents in the UK are failing to put money aside for their children, meaning that if the worst should happen and they become dangerously ill, their offspring would have little financial protection.

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