Financial impact of Covid a worry

People are more concerned about the impact of Covid-19 on their finances than they are about Brexit, a survey suggests.

When it comes to the two major challenges the UK faces – the handling of the coronavirus pandemic and Brexit – twothirds (65%) think the pandemic is more concerning for their personal finances, while more than a fifth (21%) believe Brexit is the bigger threat, Nationwide Building Society found.

The findings were published as part of Nationwide’s savings index which was compiled from a survey of more than 11,000 people across Britain in May.

The research found that, despite many households now living on reduced incomes, nearly two-fifths (37%) of people had put more into a savings account than they would usually, rising to 45% of 18 to 34-year-olds.

Only one in six (16%) people said they had saved less since lockdown started on March 23.

And more than a third (36%) wish they had saved more before the pandemic struck.

Research from website Moneyfacts found last week that the choice of savings accounts on the market has fallen to the lowest levels since at least 2007. To compound savers’ woes, average savings rates for many types of account are now sitting at record lows.

However, most people think it is still important to have a rainy day savings pot which they can turn to in an emergency.

Nationwide Building Society’s research was carried out as part of its PayDay SaveDay campaign, which encourages people to save the day they get paid to build a financial buffer.

One in six (15%) people have had to dip into their savings as a direct result of Covid-19.