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Only one out of ten savers raided their savings to buy luxuries compared with almost two fifths in the equivalent period last year – a drop of 77%. This proves that more people are coming to terms with the fact that saving, not spending, is the right thing to do in 2009.

These figures indicate a change in Britons' saving habits over the last 12 months as people are choosing to keep hold of their savings rather than spend them on luxuries and impulse gift buying, according to the latest Saving Britain research from Birmingham Midshires. Also, the number of people utilising their savings to pay for holidays has also decreased by a third, from 18% to 12% since January 2008, and non-essential purchases are being sidelined as people are choosing to protect their savings or divert them onto essential expenses.

This is great news – the temptation to fritter away hard-earned money is being taken over by the desire to save and pay off debt – the amount Britons raided from their savings in the last three months fell by £204, or 40%, compared with the same period last year.

Tim Hague, director of savings and Investments at Birmingham Midshires says: "The latest data from our Saving Britain research shows that there has been a marked reduction in the amount people are raiding from their savings and a shift in the reasons for doing so. Those who are raiding their savings are doing so for essential reasons such as emergency repairs and increased utility bills rather than spending on luxury items."

The changes seen in Britons' saving behaviour suggest that the current economic climate is having a positive impact on how we manage our savings as raiding has become a measure of last resort: Savings house deposits are up a quarter over the last six months, and raiding as a result of unexpected bills is down by almost a third and overspending on a current account down 16%, highlighting that many savers are planning their finances more effectively.

Andrew Hagger of Moneynet.co.uk says: "Even though interest rates have fallen sharply, people's attitude towards saving has shifted as the difficult economic conditions start to bite. Savers are adopting a more responsible attitude and even though rates of return are lower, they are more cautious with their savings balances. Many now view their nest egg as a safety net to protect themselves against the growing threat of unemployment."

SOURCE: BM Solutions, 09/02/09

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