Holidays, home improvements and debt repayments are the top three destinations for people’s savings in 2024, a survey for a building society suggests.
But with living costs still swallowing up incomes, half (50%) of people are saving less each month than they did before the cost-of-living crisis, the research among 2,000 people for Nationwide Building Society found.
More than a third (35%) of savers in the research are putting money aside for a holiday.
A fifth (20%) want to make home improvements and 17% want to clear debts.
Just over a fifth (21%) of savers were not putting their money aside for a particular purpose.
Given the current cost-of-living crisis, it’s no surprise that people admit they are saving less than they were before
Tom Riley, Nationwide Building Society
Nearly three in 10 (29%) people have not reviewed interest rates on their savings accounts in the last two to six months and nearly a quarter (23%) have never compared rates on savings accounts, according to the survey carried out by Censuswide in February.
Nationwide has a SavingsWatch service which informs customers when a better rate or new product comes out.
Last year, the Financial Conduct Authority (FCA) introduced a new consumer duty, requiring financial firms to put customers at the heart of what they do.
The FCA has also previously set out a 14-point action plan to make sure banks and building societies are passing on interest rate rises appropriately to savers, communicating with customers effectively and offering them better deals.
Nationwide’s survey found that while more than third (38%) of people who have not compared interest rates on savings accounts said they are happy with their account, one in four (25%) said it was because they did not have enough money to save, while one in six (15%) said it was because they do not have the time to research other accounts and rates.
Tom Riley, Nationwide’s director of retail products, said: “Given the current cost-of-living crisis, it’s no surprise that people admit they are saving less than they were before. However, for those that can save even a small amount each month, it’s important they make the most of that money by keeping up to speed on the latest products and rates on offer.”
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