A new study into Greater Manchester’s saving habits* has revealed striking differences in how residents across the region approach money – from what we’re saving for and how much we’ve put aside, to how honest we are about our savings.
The average amount in savings accounts across Greater Manchester is £15,420 with £362 the average saved each month. However, people in some areas are finding it easier to save than in others according to new research by Manchester Building Society.
The Society, which opened its first new branch on King Street in Manchester city centre last month, found that Manchester borough residents (which includes the city centre and areas such as Chorlton, Didsbury and Wythenshawe) are most likely to be saving money every month with 93% saying they do this and 62% saying they find it easy to save. On the other hand, one in eight (13%) of people across the whole of Greater Manchester say they have no savings at all. Those who do have savings said on average these would cover basic living costs for three and a half months.
In terms of what we are saving for, people in Oldham are most likely to be thinking about jetting off abroad by saving for holidays (42%). With Stockport’s property market booming, Stopfordians are most likely to be saving for home improvements (31%) while romance is in the air in Oldham with one in ten people there (9%) saving for weddings.
People in Trafford (35%) are the most likely to spend an unexpected windfall of £1,000 immediately, rather than putting it into their savings while people in Rochdale would be most likely to save it for a year so it was worth more (22%).
People in Stockport are the least likely to save for children or grandchildren with one in five (21%) saying they save nothing for children or grandchildren. The average amount saved for this purpose in Stockport is £51.40 per month, the lowest of all boroughs. In comparison, people in Manchester save £165 per month for children or grandchildren, Trafford £121.70 and Bolton £107.30.
The findings suggest that whilst plenty of Mancunians are saving regularly, others are worried about their savings and would benefit from having someone to talk to about their money. The ongoing trend of bank branch closures makes it harder for people to access face to face financial services in their community, forcing some people online, and excluding those without access to digital services.
Deborah Walker, Development Director at Manchester Building Society said:
“While it’s great to see that plenty of Mancunians are building up impressive amounts in their savings accounts, our research also shows that others have very little set aside for life’s unplanned expenses.
“Most people are optimistic they’ll be able to save more in the future, but I know at times it can feel tough to find someone you trust to talk to about your savings and how to make your hard-earned money work harder. Our new branch on King Street in Manchester city centre proves our commitment to face-to-face financial services and saving with a building society means that whether you’ve got one pound or a thousand, you’ll be earning interest for yourself and supporting the work we do with community groups and charities across the region.
“Our new Manchester Rainy Day Saver is about making it easier for the people of Greater Manchester to plan for the long term, whatever the weather.”
Manchester Building Society’s Rainy Day Saver product pays savers 4.25% Gross PA/AER (variable) and allows one penalty-free withdrawal each anniversary year. Upon making two or more withdrawals, interest of 1.90% Gross PA/AER (variable) will be paid.
The Manchester Rainy Day Saver is available to open either online at manchester.co.uk or in person at the King Street branch, is offered on a limited basis, and may be withdrawn at any time and without notice.
As a mutual, account holders become members of the Society with the ability to shape the future of Manchester Building Society. Manchester Building Society is a trading name of Newcastle Building Society, which means that eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit protection scheme. This limit is applied to the combined total of any deposits with Newcastle Building Society and Manchester Building Society. Deposits over £85,000 are unlikely to be covered.
Manchester Building Society has announced an ambitious plan to invest in the region and give back to communities through charity partnerships, including with Forever Manchester and Empower Youth Zones.
