27 January 2009
Falling interest rates are reducing the appeal of saving, according to new research from the ABI (Association of British Insurers).
The research ‘highlights the need for a new savings culture in Britain, as consumer pessimism on the benefits of saving continues to grow’: 73% of the 3,000 people questioned in the fourth quarter of 2008 said they felt the benefits of saving had fallen over the past year (compared with just 53% in the third quarter).
Dr Rebecca Driver, the ABI’s Director of Research and Chief Economist: “The current economic climate vividly highlights the dangers of too much debt – the country needs to develop a healthier approach to saving. Yet our research shows that consumers are becoming increasingly sceptical about the benefits of saving.”
“It’s important to remember that interest isn’t the only reason to save,” said a debt expert for Think Money. “Having a savings account can make all the difference when people encounter financial problems – when their income drops, for example, or when they’re faced with significant unexpected expenses. Saving today really can help people stay out of debt tomorrow.”
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Tags: debt, debt problems, saving, interest, bank, bank account, bank accounts
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