Leeds among the worst cities in the UK for saving money

Saving money is a great habit to get into to plan for the future, a third of Brits don't pay into their savings regularly - with Leeds among the worst cities in the UK for putting away the pennies.

Tuesday, 18th September 2018, 5:10 pm
Updated Tuesday, 18th September 2018, 5:17 pm
New research named Leeds as one of the worst cities in the UK for saving money

Despite four in five people in the UK currently owning a savings account, 22.1% of people only pay money in twice a year or less, with most having to be tempted by incentive and high rates to put cash away.

Regional differences

According to new research from MoneySuperMarket, those in Leeds are among the least likely to own a savings account.

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New research named Leeds as one of the worst cities in the UK for saving money

Only 73.6% of people in Leeds have a savings account, a signficantly lower number compared to Chelmsford and Wrexham where more than 92% of people were savers.

Research revealed the most common reason for not saving was attributed to never having any spare money to put aside (41.5%), while a further 17% noted that putting money elsewhere, such as in a high interest current account, makes better financial sense.

Popular savings options

The findings also revealed Brits are moving away from cash ISAs in favour of easy access accounts which offer incentives or higher rates of interest.

Those opting for easy access savings account has risen by more than four per cent in the past two years, with fixed rate bonds also remaining a popular option, with over 30% opting to explore this type of savings option.

Sally Francis-Miles, money spokesperson at MoneySuperMarket, commented: “The financial crash of 2008 hit savers hard and the market has yet to fully recover.

"However, savings accounts are still popular and a great way to grow your money.

“There are a lot of options out there in terms of savings products, from fixed rate bonds to easy access savings accounts, but consider your personal needs and do your research before choosing.

"Generally speaking, the longer you can lock your money away for, the better return you’ll receive, although this does usually mean sacrificing access to your cash for typically one to five years and you’ll need a lump sum to make it worthwhile.

"Whatever savings option is right for you, start saving early to make the most of your hard-earned cash, add to your pot on a regular basis and resist the temptation to take it out unless it’s necessary or you have planned for it.”

Cities where people are least likely to own a savings account:

Portsmouth - 58.8%

Birmingham - 70.3%

Gloucester - 72.2%

Leeds - 73.6%

Wolverhampton - 73.9%

Cities where people are most likely to own a savings account:

Chelmsford - 93.2%

Wrexham - 92.9%

Norwich - 92.1%

Brighton and Hove - 89.1%

Cambridge - 89.1%