UK savings hit lowest level for past year

Savings levels in the UK fell 20 per cent in the last quarter, with £413 saved by the average adult in the three months from July, according to research by Birmingham Midshires.

This represents the lowest amount saved over a three-month period so far this year.

Those aged 30-50 were the most careful with their money in the third quarter of 2006, putting away an average of £464.

Over-50s saved £423, while the under-30s were the least prudent of all, putting only £295 aside.

While they may not have saved the most in recent times, the over-50s currently have the largest average nest egg of £16,001, the research found, while people in their 30s and 40s are sitting on £9,592 and the under-30s have collected around £3,128.

Jason Robinson, director of savings operations for Birmingham Midshires, commented: "Looking at current levels of savings, it would appear that many Brits may have started spending for Christmas early and so savings have fallen by the wayside slightly.

"Christmas is a great time to spend with family and friends and we want people to relax and enjoy themselves. But what we would say is make sure you’ve still got one eye on the amount that you spend so that the start of 2007 can still be fruitful."