A new report by Halifax bank has revealed that the level of savings and investments in the UK has quadrupled over the last 50 years. The report examined the years 1959-2009, and as well as uncovering a significant increase in the real term value of UK savings and investments, the study also found a change in the types of savings accounts being chosen by British savers. Unsurprisingly, tax free ISAs have proved popular since their introduction, with 14.2 million active ISAs in the 2008/09 tax year.
The study found that savers enjoyed the highest interest rates in the 1980s, with an average interest rate of 2.75 per cent after inflation - a far cry from the previous decade, in which the average real term yield on a savings account was minus 3.3 per cent, owing to high inflation.
Between 1959 and 2009, households saved an average of 7.1 per cent of their net income - a figure which dipped to its lowest point in 2000, at which point households were saving just 4.3 per cent of their income on average.
Bank Study Finds Surge in Savings Levels Over Past 50 Years
Financial Services > e-banking > Banking news
Bank Study Finds Surge in Savings Levels Over Past 50 Years
Wed, 23 Jun 2010
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