'More savers as rates rise'

Rising interest rates and more income left over after bills are contributing to more people being in the mood to contribute to their savings account than three years ago, according to a survey by Legal & General (L&G).

The study, meant to discover peoples’ ‘money mood’ revealed that whereas in May of 2005 some 57 per cent of respondents described themselves as in the mood to save, by May 2007 that number had risen to 62 per cent.

Julia Clayworth, wealth management customer marketing manager at L&G , said that the decision by the Monetary Policy Committee of the Bank of England to raise interest rates over the past three years from 4.75 per cent in May 2005 to 5.5 in May 2006, had had the desired effect.

However, she added that the higher number in the people in the mood to save was not only down to the interest rate rises.

The survey also showed that more people now have money left over after household bills and debt, with the numbers of people with left over funds following the number of people in the mood to save.

In 2005, 56 per cent of people had money to spare, while in 2007 that figure is up to 62 per cent.