A quarter of Britons have less than £500 saved despite a recent surge in people tucking cash away in the pandemic
- Some 13% of UK adults have no savings at all whilst 26% have less than £500
- The figures indicate a widening of the financial wellbeing gap
- Many adults are saving less as spend more as restrictions begin to lift
Nearly one in five Britons – or roughly 10million people – have less than £100 in savings, new research has revealed.
Meanwhile, 13 per cent have none at all and 26 per cent admit to holding under £500, according to the survey by Yorkshire Building Society.
The number of people not saving at all has almost doubled in the last two years as 21 per cent admit not saving now compared to 12 per cent in 2019.
However, 20 per cent have increased their monthly savings during the pandemic, suggesting a widening of what Britain’s second largest mutual is dubbing the ‘financial wellbeing gap.’
Sad piggy: Nearly one in five Britons have less than £100 in savings, new research has revealed
A further 17 per cent have reduced their outstanding debt during the outbreak, a trend which has been highlighted in Bank of England data.
The Office for Budget Responsibility has also estimated that Britons will have collectively stashed away £180billion by the middle of this year due to the pandemic.
Tina Hughes, director of savings at Yorkshire Building Society said: ‘Our research highlights just how fragile many people’s finances are with the shocking figure that nearly a fifth of all UK adults have less than £100 in savings.
‘While we know it can be hard for people to put money away, especially with rising living costs and in a low interest environment, we mustn’t overlook the impact saving has on people’s financial and mental wellbeing.’
The research highlighted the impact financial wellbeing has on peoples mental health finding 22 per cent of people have had sleepless nights due to money worries and 40 per cent feel stressed about their financial situation.
Another 35 per cent of people said the pandemic had increased their stress levels when it came to money.
Hughes added: ‘Now more than ever, with current and potential future economic uncertainty, it’s important for people to try and build their financial resilience.
‘Money worries can make people anxious, so we want them to know they don’t have to suffer in silence and we’re here to help them manage their money during difficult times.’
The survey by Yorkshire Building Society was of 2,000 adults by Opinium.
Savings alert! New best buy rate
Currently, the best one-year fixed savings rate is from Cynergy Bank at 0.9 per cent interest with a minimum deposit of £10,000, which launched this week.
The best option for a two year fixed rate is also from Cynergy with returns of 1.1 per cent – with the same deposit requirement.
Meanwhile, the best easy-access savings account rate is from Atom Bank at 0.5 per cent.
The best cash Isa account is with Cynergy Bank with interest of 0.54 per cent with customers needing a £1 to open.
Paying: More people are spending now that lockdown restrictions have eased in recent times
Savings dipped by 21%
Separate research from Yolt found the amount people have saved since lockdown restrictions lifted on 12 April has dipped by 21 per cent, when compared to March this year.
There was also a 5 per cent decrease in savings in May compared to April, suggesting people are looking to spend more after the easing of some restrictions.
Its research found more people are making the most of their new found freedom with spending increasing in several sectors, with the highest change in shopping and eating out.
The research found a four per cent uptick in the average amount users splashed on shopping after non-essential retail opened on 12 April when compared to the weeks in lockdown before.
There was also a four per cent rise in those spending on outdoor hospitality in the same period.