Scottish Widows reveals fall in saving account activity

New research shows an increasing number of people are failing to save money.

A significant number of Britons are struggling to place money into savings accounts.

Research by Scottish Widows shows more than one-third (37 per cent) of people are currently failing to set any cash aside into UK accounts, up from the 20 per cent who were unable to do so in 2009.

Those who are making provisions for a rainy day are putting an average of £2,641 away. However, this is significantly below the £3,466 recorded 12 months ago, with low income and a concentration on paying down debts cited as two of the reasons behind the fall in saving activity.

"The downturn of the last two years has adversely affected the finances of many households, whether through reduced earnings, increased everyday expenses or debt repayment," Iain McGowan, savings expert at Scottish Widows, states.

However, 56 per cent of people claim to have met or exceeded their saving account targets.

Meanwhile, 19 per cent of Britons told Nationwide they viewed February as a good time to save, a rise from the 16 per cent of people who felt this way when questioned in January.

By Nate Sawyer