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Newsletter

Savings 'should come before holidays'

By Sarah Engle, Tue 19 Aug 2008 - Published in Banking

Brits should consider putting saving for a rainy day before going away on holiday, Abbey Savings claims.

A study by the bank revealed 26 per cent of Brits would opt to spend any extra cash they had on a break rather than putting it into a savings account.

It also found on average Brits blow 10.1 per cent of their net income on holidays and 62 per cent dip into their savings in order to pay for breaks.

According to Abbey, the interest lost by spending savings on holidays could be as much as £3.2 billion a year.

Director of savings and investments at Abbey Reza Attar-Zedah said: "If people cut back a small proportion of the amount they spend on holidays and kept their savings, this would make a real difference to their financial wellbeing."

In other news, the Association of Payment Clearing Services has said online banking is a good way for people to plane their finances more accurately.