Surprise bills hit Brits savings and cards

Brits had to scramble to find £48.7 billion over the last 12 months as unforeseen bills snuck up on them, according to research by Abbey.

The study shows that nearly 80 per cent were hit by surprise expenses which forced them to find on average £1,375 which they financed by dipping into their savings account, using their credit card or going overdrawn on their current account.

Withdrawals from savings accounts and using credit cards were the most popular methods of meeting unexpected costs, with 37 per cent of Brits in the situation opting for each system while 13 per cent went into their overdraft.

The most common reason to resort to these measures was to pay off bills, with 42 per cent saying they had been caught unawares by bills, taxes and fees which they had forgotten or failed to anticipate.

Brits forced to pay out of their savings account may have found that the high interest raid they were earning was negated by their withdrawal.

A new savings account by Leeds Building Society allows customers to make up to 50 per cent withdrawals in the first two years without affecting the interest rate which starts at 5.50 per cent and rises incrementally to seven per cent in the third year.