12m people have no cash put aside for tough times

MORE than one in five do not have any sort of savings account – leaving around 12million people with nothing to fall back on if times get tough.

Meanwhile, nearly half (48 per cent) of those that have opened products such as Isas, easy access and fixed-term accounts put away £100 or less a month, while a quarter (24 per cent) save nothing, says a Nationwide Building Society report.

The findings were made in Nationwide’s inaugural savings index, which was compiled using customer data and a survey of more than 10,000 people.

The index will be released every six months as part of the society’s ‘payday saveday’ campaign, which encourages people to salt money away on the day they get paid to build a financial buffer.

Gemma Pauley, head of Nationwide’s campaign, said the number of people who do not use any form of savings product is ‘concerning’. Nationwide’s

■ HELP to Buy Isa providers have seen a surge as first-time buyers beat the deadline before the scheme closes at midnight tomorrow. The Isas add 25 per cent to savings – up to £3,000. So far a total of 339,747 bonuses have been paid at an average £943.

own customer data found pensioners were more than twice as likely to have more than £1,000 in savings than 20 and 30-somethings.

More than two-thirds (69 per cent) of 26- to 35-year-olds had less than £1,000 put away, compared with just under a third (32 per cent) of people aged 66-75.

But younger people were more likely to be open about their finances with friends. More than half (52 per cent) of 18-34-year-olds said they talk frankly with pals about their personal challenges of saving money, compared with only a fifth of those aged 55 and above.