London, 26th September 2023– Swirling expectations to save have left many people developing unstable habits, with over 1 in 4 (27%) struggling to save 10%, while almost half (46%) feel they should be saving double, if not triple that each month. The new study by Ford Money also found that not only are people struggling to save each month, but they are falling into unstable habits leaving them unable to safeguard the savings they do manage to squirrel away as more than 1 in 10 admit to dipping into their savings every month, most commonly to cover bills (38%).
The pressure to save is clearly mounting, as the all-or-nothing mindset takes hold. Over a third (34%) believe that saving as much as possible, even up to 50%, each month is the best strategy. However, evidence would suggest that this approach is raising some financial red flags. According to the study, one-third (33%) admit to being in debt due to unstable savings habits.
These financial woes aren’t all that surprising given the ongoing cost of living crisis, however, there are other factors at play, primarily the lack of understanding of how to make the most of your savings. According to the research, over 70% of people have never considered switching bank accounts in search of a better interest rate for their savings, despite almost 1 in 4 (37%) agreeing that it is in fact better to move money around.
However, many well-intentioned savers could be missing out on opportunities that could make their money work harder. Whether it be switching your bank or upgrading your account with your current provider, small changes in your rates could make a world of difference. This failure to maximise savings is particularly noteworthy considering the current high base interest rate of 5%Tooltip. With nearly a quarter (23%) of Brits having no savings at all, many are missing out on the opportunity to benefit from the current favourable economic climate.