Britons 'using savings to pay for cost of living'

www.moneynews.co.uk > General finance > Britons 'using savings to pay for cost of living'

Britons 'using savings to pay for cost of living'

Tue 5th Aug 2008

Britons are dipping into their savings to meet the rising cost of living, according to new research by Abbey.

According to the mortgage lender, Britons used £6 billion worth of ISA savings in the past 12 months, equating to an average of £579 per saver.

Day-to-day expenditure was the biggest reason given by those surveyed (31 per cent).

Other reasons included purchasing luxury items (26 per cent), an unforeseen expense (24 per cent), household bills (15 per cent) or help for a friend or relative (13 per cent).

Reza Attar Zadeh, director of savings and investments at Abbey, warned that on a cash ISA of £3,600 per tax year, any withdrawals made cannot be replaced.

Average balances on HSBC bank accounts have dropped by five per cent in the first half of the year, according to the Guardian.

The bank blamed the dip in its 8.2 million current accounts on rising costs of food, gas, water and electricity, saying customers have less disposable income as a result.

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'

Related News : Santander
	FSA fines Santander 1.5m
	Santander launches new fixed rate Isas
	Santander launches upfront interest bond
	Contactless banking 'still has some way to go'
	Santander reveals updated fixed mortgage rates
	Confidence of first-time buyers increases, suggests survey
	Santander launches fixed-rate mortgage range
	Third of parents would pay extra for school catchment property
	Santander offers first monthly cashback credit card
	Bank of England maintains bank rate at 0.5 per cent

Related News : HSBC
	HSBC commits to 15bn mortgage deals in 2012
	HSBC to offer deals for 2012
	HSBC advises mortgage holders to save for second purchase
	Renting out a room 'could shorten offset mortgage repayments'
	First Direct reveals lack of saving awareness in Britons
	HSBC and First Direct named top mortgage lenders
	New HSBC deal allows customers to switch to fixed rate mortgages
	HSBC finds pessimism over ability to secure mortgages
	HSBC welcomes pensions calculator change
	Pensions calculator advice important, says HSBC