Women’s savings habits are lagging significantly behind their male counterparts, according to new figures from Santander Savings1.
At present, the average Briton has £20,380 held in savings, but this figures falls to £13,070 for women compared to £28,079 for men. This brings the current savings gender gap in the UK to £15,009.
A comparison with figures from Santander’s previous savings research suggest that this savings gender gap is getting bigger; in 20112 men had an average of £24,272 deposited, whilst women had £16,720 held in savings – a gender gap of just £7,552, which is around half the current figure.
Santander’s research revealed that almost 10 million3 (19 per cent) Britons are without any savings at all, rising to 21 per cent for women and falling to 17 per cent for men. And with more than a third (34 per cent) of those questioned stating they were not depositing any money in savings accounts at present, the findings raise further concerns about the nation’s savings habits as a whole.
The amount set aside by the average Briton stands at £110 per month, but this falls to £87 per month for women compared to £134 per month for men. In 2011, the average amount deposited by women was £98 and by men £132, again illustrating considerable growth in the savings gender divide.
Richard Al-Dabbagh, Head of Savings for Santander said: “For many people, meeting the cost of everyday living can be a challenge, so the prospect of trying to save at the same time can be daunting. Having that financial safety net to fall back on is vital and it’s never too late to start saving – even if it’s just a small amount each month. A Cash ISA is a great place to start – and you can take advantage of the annual tax-free ISA allowance, helping you build a savings pot over time.”
Anna Bowes at Independent Savings Advice site Savingschampion.co.uk: “It’s always a concern if people are not putting aside enough or worse still any savings for their future. Although it’s not wholly surprising with the cost of living continuing to rise, albeit at a slower pace, it’s still essential that everyone puts something aside. In the current low interest rate environment there may be less incentive to save, but people have to think about their future as well as saving up for things they may need in the short term.”
Looking regionally, people in the South West have put away almost £12,000 more than the national average at £32,129. At the other end of the spectrum, those in the North East have the lowest amount saved – averaging £11,266. Looking ahead, almost a quarter (24 per cent) of Britons say they plan to increase the amount they are saving within the next three to six months.
Table one: Regional savings figures
Region
Amount saved (total)
Amount saved each month
South West
£32,129
£96
East Midlands
£29,877
£110
London
£24,351
£173
Wales
£23,538
£76
South East
£22,953
£136
West Midlands
£21,349
£92
Yorks Humber
£17,195
£114
East of England
£16,591
£104
Scotland
£16,406
£84
North West
£13,828
£101
Northern Ireland
£12,788
£64
North East
£11,266
£97
UK
£20,380
£110
Source: Santander Savings
Santander also questioned respondents about what they wanted from a savings account and found that access to their money without charge was the most important, cited by 46 per cent. A good rate of return (36 per cent), access to their account online (8 per cent) and good customer service (4 per cent) were also frequently cited.
At present in the UK, an instant access savings account is the most popular type of account, held by 61 per cent of people.
Table two: Most popular type of savings accounts
Type of savings account
% of people who have one
Instant access savings account
61%
Cash ISA
45%
Regular savings account
19%
Stocks Shares ISA
12%
Children's savings account
9%
Savings bond
8%
Notice savings account
8%
Source: Santander Savings
Santander ISAs
Savers keen to ensure a guaranteed rate, can opt for Santander’s market-leading 2.30 per cent (AER) two year fixed for both new and existing 1|2|3 and Select customers or its two year fixed ISA, available to all customers, at 1.80 per cent (AER). Customers looking for an easy-access ISA account can opt for Santander’s 1|2|3 Direct ISA Saver which pays 1.70 per cent (AER), or its Direct ISA Saver, now at 1.20 per cent (AER), available to all customers.
Santander ISA customers will be able to take advantage of the new ISA limits announced in March 2014. Those with Fixed Rate ISAs can continue to deposit up to the £15,000 maximum allowance during July and August 2014. Plus all Santander ISAs accept transfers in from other Santander ISA accounts and other ISA providers. Santander's current savings rates remain competitive and offer customers and their families good value.