UK steps into 'save' mode

Britain has stepped out of 'spend' mode and firmly into 'save' mode, recent figures show.

The monthly MoneyMood survey from Legal & General showed that 65 per cent of adults were in the mood to save at the end of January, while just 22 per cent were in the mood to spend.



The UK's appetite for saving at 65 per cent was an increase from the 51 per cent who wanted to save in December 2006 and the highest savings figure recorded for a year.

Director of customer marketing at Legal & General Claire Stracey said that the research was carried out just after the Bank of England announced a further interest rate rise to 5.25 per cent and treasury minister Ed Balls said that Isas would be a permanent feature of the savings market.

A fall in household disposable money was the most likely factor suppressing the mood to spend in the survey, she added.

Ms Stracey said: "MoneyMood found that the percentage of households who said they have money to spend after paying bills and debt payments fell again for the third year in succession.

"That would suggest that fewer households would be in a position to spend this time round."

Britons 'should work on savings plan to enjoy more leisure time'

Britons should work harder on their savings if they want to spend more time doing what they enjoy, it has been claimed.

Research from personal finance website Fool.co.uk found that the average Briton would be prepared to pay £1,280 over the course of a year for an extra hour off work each day.

When asked what they would do with this extra time, 53 per cent would want to spend time with friends, families or partners, 49 per cent would read books or newspapers, or listen to music and 37 per cent would exercise or do some form of sport.

Head of personal finance at Fool.co.uk David Kuo said that in many cases, Britons' finances need to work harder rather than them.

By saving money, people can reduce the pressure at work and spend more time doing what they like doing the most, he explained.

He commented: "By just making a few small changes like putting away 5p in every pound you earn can help turn every month into a good month for your personal finances."

When questioned about their ideal savings account in a study from Nationwide, 77 per cent of people said that they wanted a high interest rate beyond the first year.

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