4 March 2011

Savers Unaware of What Banks do with Their Cash

New research has revealed that nearly 30 per cent of customers admit not knowing what their own bank does with customers’ savings, according to Triodos.

New research has revealed that nearly 30 per cent of customers do not know what their own bank does with their hard earned savings.

Despite the surrounding controversy of British Banks and the Northern Rock crisis in 2007, just 4 in 10 bank customers believe bank savings would be lent to other companies.

The study found that 35 per cent of customers add interest to their savings or lock the money away in a vault, ethical bank Triodos, revealed.

The research brings to light how little people know and understand about how their money is being used by banks. Less than half of the people questioned, 47 per cent, were aware that customers' savings would be frequently used to lend to mortgage borrowers.

As a charitable nation, the research by Triodos also found that 80 per cent of the nation gives money to charity one way or another. Brits put nine times more into their savings than they donate to charity.

However despite these figures new research from Scottish Widows has revealed that more than 1 in 3 UK adults are failing to save anything at all. 18 million people across the country are struggling to save money.

The greatest number of non-savers are middle aged with living costs cited as the main reason for their shortfall. Unemployment, inflation, the rise in student tuition fee and utilities are reasons why people are finding it difficult to put money aside.

The research found that the average first time buyer could rise from 30 years of age to 44.

If you are a first time buyer, or looking of ways to cut down you bills in order to start saving compare mortgages for a better deal.