More saving spare cash, survey shows

Public sentiment towards saving money has reached its most positive level for nearly two years, a new survey shows.

The latest monthly savings index from building society Nationwide UK (Ireland) shows a significant rise in the number of people looking to save, rather than spend, any spare cash they may have.

According to the September survey, 39% of people are saving regularly; up from 30% in August and at this time last year.

Furthermore, only 16% of people think they are saving more than they should; with over 60% feeling they should be saving more.

Back in July, Nationwide UK (Ireland) found that the level of spending had deteriorated, to just over 30%, but its August survey noted an increase as fears of a return to recession prompted more desire to put away money.

“There has been a strong rebound in the savings index over the past three months,” Nationwide’s chief in Ireland, Brendan Synnott said.

“Declines experienced earlier in the year have been completely reversed and overall sentiment towards saving in July and September is at its most positive since Jan 2012.

“However, this week’s budget is likely to be a key factor in determining whether this positive trend continues.”

Mr Synnott said attitudes towards Government policy on saving continues to polarise opinion. As many as 60% of people responding to the latest survey feel that Government policy discourages saving; a one percentage point increase from the previous month. Just 11% of the population believe that Government policy encourages saving.

The survey notes that while one-third of people would save surplus cash, there has also been a slight year-on-year rise — from 7% to 9% — in the proportion who would prefer to spend it.