Increase In Household Bills Discourages Savers

Figures released by British Bankers Association (BBA) suggest that an increase in the cost of living may be having a negative impact on savings. Personal deposits into banks rose by £6.1bn in the first half of 2011 compared to £15.9bn during the same period in 2010.                   

With the Bank of England base rate looking set to remain at its historic low level, giving people little incentive to save, and with utility prices expected to increase sharply over the next twelve months, the trend is likely to continue.

David Brooks, Statistics Director at the BBA, said “Personal deposits are growing only slowly as some people may be using savings to pay higher household bills,”.

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