Covid UK: 55% plan to maintain current savings habits after lockdown, TSB survey finds

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More than half of Britons plan to maintain their current savings habits after lockdown restrictions are relaxed, according to research

  • Fifty-five percent of those surveyed said they strive to maintain their savings habits
  • 37 percent said they will delay spending until the economy stabilizes
  • More than a fifth, 21 percent, said they will not hold back on spending after the lockdown

According to a survey, more than half of people are striving to keep their current saving habits outside the confines of the coronavirus.

Fifty-five percent of people asked by TSB said they will try to continue putting money away, as they did during the pandemic.

And more than a third, 37 percent, said they will delay spending as much as possible until the economy stabilizes, TSB found.

However, just over a fifth, 21 percent, said they won’t hold back their spending because lockdown restrictions are relaxed because they want to indulge, the survey of 2,000 people revealed in March.

Fifty-five percent of people asked by TSB said they will try to continue putting money away, as they did during the pandemic.  Stock image depicted

Fifty-five percent of people asked by TSB said they will try to continue putting money away, as they did during the pandemic. Stock image depicted

Many families who cut back during the pandemic have used unnecessary money to pay off debts. They paid off a total of £ 16.6 billion in 2020 – another record, according to figures from the Bank of England.

Marta Kijowska, TSB’s head of personal checking accounts, said: “The pandemic has changed our behavior towards money and we’ve seen our customers spend less and save more.

“It’s important to be in control of your money, and we see our customers increasingly wanting help to keep saving and budgeting so they can get the most for their money.”

However, just over a fifth, 21 percent, said they will not hold back their spending now that lockdown restrictions are relaxed.  Stock image

However, just over a fifth, 21 percent, said they will not hold back their spending now that lockdown restrictions are relaxed.  Stock image

However, just over a fifth, 21 percent, said they will not hold back their spending now that lockdown restrictions are relaxed. Stock image

Britain’s ‘involuntary’ savers chased away more than £ 150 billion last year as the pandemic kept them from splashing out on expensive holidays and nights out.

Households built their bank deposits from £ 1.48 trillion to £ 1.63 trillion over the course of 2020 – up from £ 151.7 billion, the highest since the records began in 1997, according to figures from the Bank of England .

But not all households are benefiting from the surge in savings, as the statistics mask a huge disparity between well-off families who have been able to work at home and workers – usually with lower incomes – who have seen jobs cut.

Budgeting tips from TSB …

Do a full health check of your finances

This means looking at your incoming and outgoing monthly funds – write down your essential expenses, including utility bills, food, rent / mortgage, and credit card or debt payments.

Take a look at your spending habits before the pandemic so you understand what your future spending might look like.

Set a monthly and daily budget for yourself

It can help to have an end goal or goal in mind, and try to put your savings aside in a separate account on payday so that you are less likely to get into it.

Use savings tools

Some accounts offer ’round up’ features that round your expenses to the nearest pound and convert your extra pennies into savings.

Having access to online banking can also make it easier to track expenses.

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