Date issued: 9 Mar 2010

SAVERS RISE IN NUMBER - JUST IN TIME FOR THE ISA SEASON

• Total number of regular and occasional savers reaches highest figure since May 2008
• ISA season is an important opportunity for savers to make the most of their money
• Consumers feel more positive about it being a good time to save given the current economic situation

Following on from the previous month's rise, 80% of consumers in February 2010 described themselves as either regular or occasional savers - the highest figure since May 2008.

This improvement could be as a result of a combination of factors. As shown recently in the most recent Nationwide Consumer Confidence Index, consumers' confidence in the present and future situation has improved. We believe that this could have had a positive impact on people's ability to save. In addition, with the end of the tax year getting closer, the 'ISA season' is now in full swing and it would not be surprising to see this providing a stronger incentive for people to save.

Andy Hutchinson, Nationwide's Head of Savings says: "As the end of the tax year gets ever closer, we expect to see more and more people open or top up their ISAs before they lose this year's annual ISA allowance forever. There are very few opportunities in life to 'beat the tax man' and one of those opportunities is to take out an ISA, so I encourage eligible savers to use their ISA allowance as soon as possible. We estimate that cash ISAs alone are saving consumers over £680 million in tax over a year, so ISAs can clearly make a substantial saving.

"So although we cannot say for sure, the rise in the total number of regular and occasional savers could be something to do with the fact that this time of year often sees a rise in the number of savers taking out ISAs."

Consumers feel more positive about it being a good time to save in the current economic situation

• 19% of consumers (an increase of 3%) now believe it is a good time to save given the current economic situation.
• Only 6% of consumers (the lowest figure since the Savings Index began*) see it as unimportant for them to personally save.
• However, nearly half of all consumers still see it as a bad time to save given the current economic situation.

Andy Hutchinson says: "It is encouraging to hear that more people are feeling more positive about saving given the current economic situation. Recent reports suggest that economic growth was greater in the last quarter than initially estimated, so hopefully this will create a positive impact for the general savings environment in the near future."

Full report can be found here: Savings Index report - 9 March 2010.