10th August 2015
While the majority, or 64%, of regular savers believe it is important to contribute towards a ‘rainy day’ fund, 25% consider themselves as ‘aspirational’ savers, choosing to put their cash towards a tangible savings goal.
The most popular savings goal for 51% of aspirational savers was a holiday. A new home was the second most important goal for 31%, while 17% were saving towards home improvements.
Table one: Most Popular Aspirational Savings Goals
|Ranking||Aspirational savings goals||Percentage of ‘aspirational savers’ saving towards this goal|
|2||A new home||31%|
|4||A new car||12%|
|5||New clothes or accessories (i.e. watch, shoes etc.)||10%|
|8||Present for loved one||6%|
The research also revealed that 80% of adults hold at least one savings account and nearly half at 48% of those with a savings account said they saved at least once a month.
While the average savings pot stands at £10,156, with an average monthly contribution of £156, 15% actually have less than £100 in their savings.
Of those with a savings account, 54% have one account, 30% have two and nearly 9% have three. Notably 7% of savers have four or more accounts.
The analysis also found that nearly a third, at 31%, have a savings account linked to their current account, with more than a quarter of those saying this was one of the main reasons they chose their existing current account. In addition, 39% believe they save more as a direct result of having a linked savings account.
Paul Stokes, head of products at M&S Bank, commented: “It’s great that the vast majority hold savings accounts and, more importantly, half are choosing to save regularly. Saving just a small amount each month can really go a long way, whether you’re saving for a rainy day or an aspirational target, like a holiday, new home or home improvements.
“Linked or regular savings accounts often offer more competitive rates and are a great way to help savers reach their goals; our research shows that they’re becoming even more popular with savers.”