Prepaid Bank Balances
Bank balances revived thanks to careful saving
Despite the recent financial downturn, record savings have been reported as savers have increased their balances to the highest level seen for two years.
During the first quarter of 2012, consumers have raised their bank balances on average by £284, as households control their budgets with a careful eye.
Due to record low interest rates for three years, it has been a challenge for savers to find accounts that provide a real return on their hard-earned cash and due to the economy and rising household bills it has been more difficult than ever for consumers to save.
According to ING Direct’s consumer savings monitor report, when compared to the previous quarter, consumers in the first three months of 2012 saw an 18% rise in their savings. This brings the average savings account total to £1,858.
Since the second quarter of 2010, when consumers had roughly £2,050 tucked away in savings, these recent figures are the highest in two years.
The report said consumers have had a strong determination to pay down debts and spend carefully, which is what has contributed to the return of savings.
Consumers have an average of £2,242 in unsecured debts, including credit cards, loans and overdrafts. This shows a rise of £18 throughout the last three months.
Richard Doe, ING Direct Chief Executive, said: "Our research told us that ordinary Britons saw restoring savings as their top financial priority for 2012, but in the current climate we thought it would be tough for them to deliver on this.
"Six months of relatively restrained spending may not have helped the economy in terms of GDP growth, but it has allowed Britons to deliver on their determination to restore their savings."
If you are looking to start saving, it is best to research the different bank accounts on offer. Comparing different accounts will help you get the most from your savings in the long run.