The latest data from banking trade body UK Finance has shown that the British public has more than £870 billion in savings within major high street banks.
Savings increased by 2.6 per cent in November 2019 compared to the previous year thanks to higher wages and lower consumer spending.
UK Finance said that despite this, greater political and economic uncertainty had made consumers more cautious about spending and saving, with Brexit having dampened consumer confidence.
The most common kind of account is either an easy-access current or savings account, with more than three-quarters of the total £870.4 billion held in such accounts.
It is thought that uncertainty over short-term household finances is behind the trend in easy-access accounts, which has led to a 1.4 per cent annual decline in funds stored in more restricted but more lucrative long-term accounts.
UK Finance said: “While low investment returns play a part, quick access to disposable income in uncertain economic times is the driving force for individuals when managing household budgets.”
The latest UK Finance data also showed that credit card spending dropped by 3.3 per cent year-on-year to £10.9 billion in November 2019, while overdraft borrowing also decreased by 0.8 per cent.
Link: Household Finance Review