Brits to Spend 3.45 Billion Pounds of Savings on Christmas this Year – Santander UK

LEICESTER, England--(EON: Enhanced Online News)--New figures from Abbey Savings(1) show that Brits will use 3.45 billion pounds of their savings this year to help cover their Christmas spending, with a third of us (32 per cent) planning to use 9 per cent of this year’s savings – an average of 221 pounds each.

It’s no surprise however that the majority of people (59 per cent) are planning to cut back this Christmas, with gifts for family and friends first on the list of cut backs, as 42 per cent of Brits say that they will reduce spending on these. Second on the list is socialising, as many of us (23 per cent) plan to reduce spending on Christmas drinks, parties and meals. Shockingly, almost one million Brits are already saying they will return the gifts they receive this year in exchange for cash, in order to reduce the financial burden of the festive season.

Most concerning however is 39 per cent of us are currently saving nothing and one fifth (20 per cent) of people claim to have no savings whatsoever to fall back on this Christmas.

Reza Attar-Zadeh, Director of Savings & Investments commented: It’s clear that many people are planning ahead and scaling back this Christmas in an effort to reduce their spending, which seems a sensible move. We know that people still rely on their savings to cover many of their Christmas outgoings but savings shouldn’t just be for Christmas, and we encourage people to keep a healthy balance, so that they’re starting the New Year from a good base”.

Reza Attar-Zadeh, continues: “Whether savers decide to put their money aside for the long term, for a specific purpose such as a Christmas or a holiday, or for emergencies, the most important thing is to work out a plan of action that works for them – then choose the right accounts to suit their needs”

Abbey, Alliance & Leicester and Bradford & Bingley have a range of competitive savings accounts to suit each and every savers needs, including our Fixed Rate Monthly Saver, a regular savings account allowing savers to put aside as little as 20 pounds a month (up to 250 pounds a month) paying a highly competitive 4.00 per cent gross/AER fixed for one year. Or our Instant Access Saver account paying 2.50 per cent gross/AER which includes a 1.50 per cent bonus for one year with access via the branch or telephone.

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

Notes to Editors

(1) Opinium Research carried on behalf of Abbey of 2000+ adults, February 2009 and November 2009

About Us

Santander (SAN.MC, STD.N) is a retail and commercial bank, based in Spain, with operations in more than 40 countries. At the end of 2008, Santander was the largest bank in the euro zone by market capitalization and third in the world by profit. Founded in 1857, Santander had EUR 1,168 billion in managed funds at the end of 2008. Following the acquisition of Sovereign Bancorp of the U.S. in January 2009, Santander has 90 million customers, more than 14,000 branches – more than any other international bank – and over 180,000 employees. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal and a broad presence in Europe through its Santander Consumer Finance arm. In 2008, Santander registered EUR 8,876 million in net attributable profit, an increase of 9 per cent from the previous year excluding capital gains.

In the UK, Santander operates three retail businesses – Abbey, Alliance & Leicester who provide competitive savings and current accounts products, and Bradford & Bingley. Together they have over 1300 branches, around 4,500 cash machines and they provide a full range of retail and corporate banking services to 24 million customers.

Abbey, Alliance & Leicester and the savings business of Bradford & Bingley will all become known as Santander by the end of 2010. Abbey and the savings business of Bradford & Bingley will be rebranded from the first quarter of 2010 and Alliance & Leicester will follow later in the year. The move will deliver a significant advantage for customers as they will be able to use any of 1,000 Santander branches from early 2010, rising to over 1,300 by the end of 2010. For more information visit http://www.santander.co.uk.

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