Two fifths of Yorkshire people rely on savings to get by
New research shows people in Yorkshire are dipping into savings to face the cost-of-living crisis
UK Savings Week (26 September – 2 October), spearheaded by Yorkshire Building Society, aims to raise awareness of the benefits of saving and encourage people to foster better savings habits
The mutual has a range of activities planned across the week to help people in the region build financial resilience
The rising cost of living is putting significant pressure on many households’ finances in the region according to new research from the Building Societies Association (BSA).
Findings show four in 10 (40%) Yorkshire people are relying on their savings to get them through the cost-of-living crisis and two fifths (40%) say if they lost their income they wouldn’t have enough savings to cover their living costs even for a single month, highlighting the challenges people in the county face.
Yet despite the financial pressures caused by the rising cost of living, more encouraging signs show that over two thirds (69%) of people from Yorkshire say they could save £10 a month, and a quarter admit they have switched to accounts which provide cashback or bonuses.
But more could be done to maximise returns on savings, experts warn, with findings showing that around a fifth (22%) of Yorkshire savers don’t check the interest rate paid before they open an account, and a third (32%) never comparing the rate on their savings to other accounts available.
UK Savings Week, which runs from 26 September to 2 October, is a collaboration of building societies, credit unions, consumer groups and debt charities that aims to get people engaged with saving, whether they are already savers, have no savings but could save a little, or may be unable to save right now but could when times improve.
To mark the week Yorkshire Building Society branches in the region will be completing Money Minds financial education sessions with local schools and community groups. Branches will also be holding events designed to provide people with help to build financial resilience and reach their savings goals as well as providing a range of support tools to help people build their financial resilience and take practical steps to saving more.
Chris Irwin, director of savings at Yorkshire Building Society, said:
This new research from the BSA shows the harsh reality many across our region face as a result of the cost-of-living crisis with two fifths of people dipping into their savings to get by.
With so many relying on their savings it’s important people take advantage of the best deals available to them, but with more than £260 billion currently in accounts across the country paying no interest, more really can be done to earn a better return on savings, no matter how small emergency pots or nest eggs are.
It’s reassuring to see the majority of Yorkshire people say they could save £10 a month though and I’m delighted so many of our branches are taking part in UK Savings Week to help people across the county take their first, or next steps to building their financial resilience.