A survey by Paragon Bank found that topping up ‘rainy day’ funds and booking a holiday are two leading financial priorities for savers this year.
In a survey of more than 2,600 customers, Paragon Bank asked savers about their long-term plans for any money saved during the pandemic.
The research showed that 29% of savers will prioritise topping up their emergency fund with any savings made during the pandemic, which is reflective of Brits responding to the ongoing climate of economic uncertainty.
Booking a holiday was also a priority for 29% of savers, as many people prioritised splashing out on a trip abroad after many experienced cancelled travel plans in 2020.
Saving in a fixed rate product was the second top priority, with 28% of savers planning to lock money away in a fixed rate in order to guarantee rates during challenging market conditions. Home improvements plans took third place for 27% of savers.
A quarter of savers also had generous plans for their pandemic funds, with 15% planning to gift some of the money to a loved one and one in ten committing to a charity donation.
Purchasing a property was by far the leading priority for younger age groups still saving for a deposit for their first house purchase, with 64% of 18-24 year olds and 75% of 25-29 year olds naming this as a priority.
Half of customers able to save more during the pandemic
The survey found that one in two customers were able to put more money aside during the pandemic, with millennials in the best position to save more.
Millennial savers were most likely to be able to put more money aside during lockdown compared to other age groups, with more than two thirds (67%) of 25-29 year olds and 65% of 30-39 year olds saving more money than usual.
Derek Sprawling, Savings Director at Paragon Bank, said:
“It’s clear from the data that the ongoing climate of economic uncertainty is impacting people’s financial plans. Topping up emergency funds and saving in a fixed rate product are two leading priorities, combining to nearly double the proportion of respondents who are looking to invest in a much-needed holiday.
“Splitting funds between an easy access ‘rainy day’ fund and a fixed rate is a good solution for those looking to have access to money in the event of an emergency, while also ensuring they get a competitive rate on a portion of their savings.”
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