Credit crunch 'forces Brits to dip into savings'

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Credit crunch 'forces Brits to dip into savings'

Wed 18th Feb 2009

A survey has found that nearly half of Brits have withdrawn money from their savings accounts to help them make up the shortfalls in their income during the credit crunch.

Fairinvestment.co.uk, which conducted the study, found that 18 per cent of the people it polled have already used up ten per cent of their savings since the credit crunch hit.

A further seven per cent said they had used up between 11 and 20 per cent of their total savings, while five per cent have had to use between 21 and 30 per cent and four per cent have used between 31 and 40 per cent.

Sharon Bratley, a chartered financial planner at Fairinvestment.co.uk, said: "It is hardly surprising that so many Brits have had to dip into their savings.

"The cost of living is going up and so is the number of job losses, leaving Brits vulnerable and dependent on backup like savings."

Recently, Nationwide announced the launch of new fixed-rate bonds aimed at savers.

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