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Optimistic outlook boosts savings levels, claims Lloyds

People in the UK are beginning to feel more positive about their ability to save, according to the quarterly Lloyds Bank Savings Index. It claims that easing pressure on disposable income and the positive economic outlook have contributed to this upward trend.

The bank’s research shows that the national savings appetite has steadily increased over the last 12 months. The proportion of those saving regularly or whenever they can has risen by 2% to 67% over the last year. People in the Greater London region are significantly more likely to be saving (75%).

Instant access savings accounts continue to be the most popular choice, with 52% opting for one of these accounts. This is closely followed by the use of cash ISAs at 51%. Those living in Yorkshire and Humberside are the most likely to use an instant access savings account (59%). Cash ISAs are less popular among those in the North East, (35%).

Those accessing their savings to avoid going overdrawn has declined by 3% from the first quarter of 2013 to 17% during the first quarter of 2014.

People in the North West of the UK are the most likely to use their savings for a holiday (41%). Those in the South West are the most likely to use their savings to pay off an overdraft (28%), while those in Greater London are the most likely to use their savings to pay off debt (19%).

Andy Bickers, savings director at Lloyds Bank, comments: “It is encouraging to see a more positive outlook and shift towards savings in the last year, even if the trend is gradual in some areas.

“However, with one in three saying that they’re still not saving anything, there is still some way to go. Even if people just put away a small amount each month this can be increased as circumstances improve.”

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