As the UK starts on its resolution list, money matters are firmly on the agenda with the majority of people (78%) saying they plan to save in 2017 and a third of that group, (34%) saying they will save more than in 2016. The research, from new challenger bank Masthaven, finds that many people will be saving with distinct goals in mind, with an estimated £4,000 each being put aside.
Of those with a clear goal in mind, holidays are the key reason to save (26%), followed by home improvements (11%) and housing deposits (10%). Yet saving for financial security (45%) and for a rainy day (23%) are also key drivers for many. Those looking for a new savings account next year say that good interest rates will be top of their shopping list (45%).
Jon Hall, Managing Director, Masthaven said:
“For several years now the conventional wisdom has been that around a third of people in the UK don’t save. This research shows a more positive outlook and one we are keen to ensure happens. As a new challenger bank we are helping people meet their goals by creating new ways of saving.”
According to the Masthaven research among 2,009 UK adults, 78% say they plan to save next year, with 34% saying they will save more and 28% saying they will continue to save at the same levels. A further 16% will continue to save but less than they have done this year. Just under one in five (18%) say they don’t save and won’t start and 3% say they will stop saving.
Of those planning to save more in 2017, most are in the 18 to 34-year-old group (46% of them plan to save more), while the regular savers are most likely to be over 55 (31% in this group said they would continue to save at the same level).
People in the North East (81%) and South East (81%) are the most likely to say they will save next year, while those in the East of England (72%) and South West (73%) are less likely to save in 2017. People in Yorkshire and Humber and the West Midlands are most likely to try and save more in 2017 (41% and 40% respectively).
The Masthaven Flexible Term Saver account challenges banking convention by allowing people to decide the date when their savings account matures. The combination of competitive rates and ease of use means savers can take advantage of a fixed term rate over a timeframe that suits their lifestyle.
Designed to help savers meet their short or long-term goals - whether that’s a holiday or wedding anniversary or a future event such as university fees or house deposit - customers can use a sliding scale to pick any date between six months and five years to create their personalised fixed term end date. They can also decide whether they prefer to receive interest annually or monthly.
Masthaven’s New Year’s resolution release has received coverage in the Daily Express, Moneyfacts.co.uk, Moneynet and the New Year’s Resolution Show.