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‘Instant access is ‘top priority’ when it comes to savings’

May 22, 2007 at 10:54 am

New research from Nationwide Building Society has revealed that UK consumers consider instant access to be the most important feature of a savings account.

The building society found that more than half (54 per cent) of British bankers consider it essential that a savings account allows for instant access withdrawals and transfers. The research also revealed that more than four in five customers (84 per cent) believe it is important that there is no penalty for withdrawals.

While 56 per cent of respondents considered a high interest rate for the first year to be crucial, over three quarters (77 per cent) preferred to have a good rate over a longer period, showing that most were planning to invest in the long term.

The increasing prominence of internet banking was confirmed by the fact that two in five (42 per cent) bank customers felt they needed to manage savings online, but face-time is still important to people and 56 per cent want to be able to manage their accounts in a local branch.

The research indicated that over a third (35 per cent) of British adults save on a regular basis, while a further 44 per cent put money away from time to time when they feel they can afford it. It also showed that 21 per cent of the population fail to make any savings whatsoever.

Although 78 per cent of those surveyed claimed that they save money in a savings account, 12 per cent admitted to leaving their cash in a current account, while 10 per cent chose not to keep their money in a bank at all.

“Saving doesn’t have to be difficult or complicated and no matter how much you can afford to save, it is important that your money is saved in the right place – not under a bed or in a jar,” said Matthew Carter, Nationwide’s divisional director of mortgages and savings, in response to the findings.

Changing savings patterns

According to research from Birmingham Midshires’ (BM) Saving Britain campaign, prioritisation of instant access by consumers reflects the rise of a “have-it-now” culture in the UK. Indeed, the bank claimed that more than half (51 per cent) of all British savers opened a new instant access savings account in the first quarter of 2007, while fewer than one in five (16 per cent) were willing to tie their money to any longer term schemes, such as fixed-rate bonds.

With the Office of National Statistics recently reporting that consumption of goods by UK households increased by 73 per cent, between 1991 and 2005, BM suggested that many of Britain’s consumers are, in fact, saving to spend.

Jason Robinson, BM’s director of savings operations, commented: “Instant access accounts are an excellent way of saving for short term needs however we would encourage savers to also remember the long term and make adequate provisions.

“It is worth considering a number of savings ‘pots’ for different purposes which can nowadays be very easily managed online,” he explained.

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