LONDON, 18th May 2012: Savvy savers are going back to basics to set aside more money for a rainy day, with a projected 2.5 million[1] new savers collectively depositing an estimated £370 million[2] over recent weeks, according to the first GE Capital Direct Savings Census. The figures indicate the promising return of a UK savings culture, against a backdrop of economic uncertainty for households across the UK.
The researchamongst more than 2,000 UK adults indicates that on average, UK savers could have deposited as much as £6.1bn[3] into their savings accounts. Of the projected 2.5 million new savers:
- Two in five (40%) may be saving money towards a specific goal;
- A third (34%) may set money aside to protect their long-term financial security.
The research was released following the launch of GE Capital Direct, the new UK-based, online savings bank. Commenting on the findings, Sheragh Beirne, Managing Director of GE Capital Direct said: "People are understandably concerned about protecting their financial wellbeing in order to feel safe and secure. At GE Capital Direct, we're committed to providing a straightforward, transparent and clear approach to encourage more people to feel the benefits of saving."
Over half of all respondents (52%) agreed that saving makes them more eager to achieve their financial goal with individuals putting money aside for a specific purpose saving around £300 extra a year. With an estimated 12 million[4] Brits saving towards a particular goal such as a house deposit, car or school fees, the survey suggests that UK consumers are increasingly abandoning the 'have now and pay later' mentality in favour of a return to the more responsible approach of waiting longer and saving up for larger items.
The research also reveals that adopting healthy attitudes to saving can have a positive impact on physical and mental health:
- Almost three quarters (73%) stated that saving provides greater piece of mind;
- Almost a third (29%) of respondents noticed a marked improvement in their general mood;
- More than one in five (21%) surveyed have experienced a better night's sleep since putting money aside;
- One in 20 even reported taking fewer sick days from work as a result of establishing a savings habit;
- Participants aged 18-24 were most likely to agree that their financial situation had a direct impact on their health (56%) compared to those aged 65 and over (33%).
GE Capital Direct launched earlier this week, offering a choice of simple, safe and secure savings accounts for UK consumers. The bank provides a convenient alternative to traditional high street banks. For more information about GE Capital Direct, its products and to view the GE Capital Direct Customer Promise, please see here www.gecapitaldirect.co.uk
Ends
Michael Goodbody
GE Capital EMEA
[email protected]
+44-207-302-6269
+44-7899-808-239