Holidaymakers use savings for trips

13 April 2012

Many holidaymakers raided their savings accounts to fund their summer break, according to a new study.

Some 29% of people dipped into their savings between April and June to cover the cost of going on holiday, according to Birmingham Midshires.

Its Saving Britain campaign found 40% of people resorted to their savings in the last quarter, up from 37% in the first three months of 2006.

Each withdrew an average of £390, up 46% from the £267 average taken out three months ago.

While many may have used the cash to pay for a holiday, 24% were forced to raid their savings to cover overspending on their current account. Emergency home and car repairs also saw 19% of savers pulling out extra cash.

Some 37% of those aged under 30 and 38% of those aged 30 to 50 dipped into money set aside for a rainy day, compared with 43% of the over-50s.

But the over-50s took out the most cash at an average of £657, mainly to pay for time away with a further one in five using the funds to cover the cost of unexpected utility and household bills. In contrast, the under-30s pulled out just £94 to pay for a holiday or to cover overspending on their current account.

Londoners were the least likely to raid their savings, with 35% needing the extra cash compared with 45% of Northerners. Those living in the North also took the most from their savings at £500, while the Welsh and people in the Midlands took the least at £313.

Scots were most likely to use their savings to pay for bills and home and car emergencies, but 18% also raided their own savings to loan money to friends.

Jason Robinson, director of savings operations for Birmingham Midshires, said: "People are clearly making the effort to save; the hard part however is leaving the funds in savings and not spending them. This comes from planning and commitment and we always encourage savers to try and be realistic in what they put away."

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