Brits forced to dip into savings
Over half of respondents (56%) revealed that they have dipped into their savings accounts when they hadn’t planned to and a further quarter (26%) claimed that they would if they needed the money.
Clare Francis, site editor at moneysupermarket.com, said: “The official rate of inflation slowed last month but at 3.1% it is still well above target and with the Base Rate remaining at 0.5%, Brits still face an uphill struggle as they try to generate value from their savings at the same time as they’re battling rising living costs. It seems as though an increasing number of people are being forced to dip into their savings just to make ends meet. Not only does this underline the importance of saving, but it also highlights the value of earning the best possible return on your money.
“Poor savings rates coupled with rising living costs are really squeezing British families and whilst generating more income on savings is important, people should be doing everything they can to lessen the effects of the current economic environment.
“Before dipping into savings, it’s worth exploring other options reducing the strain on family finances. Spending wisely, using discount vouchers and focusing on repaying any outstanding debts will all stand consumers in good stead, and help free up some extra cash to relieve the financial strain they are currently experiencing. It’s well worth people trying to hold on to their savings and only dip into that money as a last resort. “