Young Britons are increasingly preparing for their financial future, new research shows.
Figures released by Birmingham Midshires revealed that the proportion of young people who have opened up a savings account has doubled over the last six months. According to the financial services firm, one in seven adults between the ages of 18 and 24 have taken out such a product in the previous three months. Compared to the one in 14 people from the age group who set up such a savings product six months ago, more consumers may find that their finances are in a favourable position in later life, which could help them meet demands for payment on areas such as loans and utility bills as they get older.
As a result, the financial services firm revealed that 18 to 24-year-olds are the most likely to have recently taken out a savings scheme. However, the research suggested that older people could also find themselves in a more capable position to make personal loan repayments and meet other financial demands later on in life as some 12 per cent of the over-55s have purchased such a product in the last three months. Meanwhile, people in this age group are the most likely to change to a different savings provider. An estimated eight per cent have done so during the past 12 weeks, a rise of two per cent from six months ago.
Commenting on the research, Rachel Thrussell, head of savings at Moneyfacts, said: "It's great news to see more young people enter into the savings market. Starting the savings habit at a young age is a great step to securing a healthy financial future. With some great rates and deals to be found it's a perfect time for savers to see a fruitful return on their savings".
"It's also encouraging to see savers being smart and switching to get better deals. Too many accounts pay poor rates of return, so it's good to see savers voting with their feet".
Jason Robinson, director of savings operations for Birmingham Midshires, added that 2007 has been "widely accepted as the year of the saver". He pointed out that not only are more people opening savings accounts, but increasing numbers of consumers, in particular older Britons, are prepared to switch products in an attempt to get a better deal.
The research also showed that more people are looking towards online saving accounts. Almost all (95 per cent) of young Britons can access their savings via the internet. Meanwhile, over half (51 per cent) of those living in the north of the country have taken an internet-based product, a proportion higher than that recorded in any other region.
Should consumers find that they do not have enough to put into a savings scheme due to present pressing financial commitments, applying for a low-rate personal loan could be a solution in meeting such demands quickly, particularly for those who find they owe money to a number of creditors. In research carried out earlier this year, uSwitch reported that those who apply online for a personal loan could find that they are able to access a lower rate of interest. However, personal finance expert Mike Naylor warned prospective borrowers to make sure they take the time to search for the loan which is right for them.
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