Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Investing

PERSONAL SAVINGS ALLOWANCE HAS PROMPTED JUST ONE IN SIX TO SAVE

PERSONAL SAVINGS ALLOWANCE HAS PROMPTED JUST ONE IN SIX TO SAVE
  • Only 17% of adults have started saving or increased regular payments a year on from the start of the tax-free allowance, Nottingham Building Society research shows
  • More than half are not aware they can earn up to £1,000 a year in interest tax-free

A year on from the launch of the Personal Savings Allowance (PSA) only one in six adults have started to save or increased the amount they save, new research* for the Nottingham Building Society (The Nottingham) shows.

Its study found that only 17% of adults have taken advantage of the new rules with around two-fifths of them first-time savers. One age group where the PSA has proved to be popular is with 18-24 year olds – with two out of five (40%) of them starting or increasing saving thanks to the new rules.

But more than half (52%) of adults are still not aware of the allowance enabling basic-rate taxpayers to earn £1,000 in interest tax-free a year and higher-rate taxpayers to earn £500 a year which came into effect from April 2016. The survey found that the over-55s were the group most aware of the new benefits – around 58%, with the figure rising to 62% of those over 65.

Savings levels rose among those aware of the Personal Savings Allowance. More than a third of them are saving more with average monthly savings hitting around £85 or more than £1,000-a-year. Around one in eight said they are saving more than £200 a month extra as a result. Half of those between 18 and 24 said they were saving up to £50 a month, 30% said they saved between £50 and £100 and 10% said they save between £150 and £200 a month.

Jonathan Cartlidge, Senior Product Manager at the Nottingham Building Society (The Nottingham), said: “This survey reflects the difficulties that many people face in making a regular commitment to save and it is heartening to see young people really making an effort. We know the sooner you start to save, the better you will prepare for life’s milestones. For example, those who have saved around £250 a month for the past five years would now have a saving pot of over £21,000.

“At The Nottingham we work hard to support our customers and members who are trying to save. Even those people who can only commit to saving a small amount each month will see their savings grow.

“Being able to earn up to £1,000 in interest tax-free is a real incentive for saving and it should encourage more people to take advantage of the wide range of accounts available in branches and online and it is particularly encouraging to see that so many 18 to 24 year olds are starting to save.

“We offer a wide range of savings accounts including easy access, cash ISAs, online accounts, children’s accounts, fixed rate, regular savings, limited access and partner accounts enabling customers to support local sports clubs like Nottingham Forest and Leicester Tigers.”

The Nottingham’s research shows around a fifth (22%) of people who are increasing the amount they save are using branch-based accounts while 47% are using online accounts.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post