Over half of British savers are withdrawing less from their accounts in 2011 as they seek to maintain their balances.  The recent survey from Birmingham Midshires found that withdrawals were down in the first quarter of 2011 with account holders also increasingly worried about the effect that rising inflation is having on their savings.

Withdrawals from savings accounts down in 2011

The latest BM Savings Report found that 52 per cent of British savers withdrew less from their savings accounts in the first quarter of 2011 compared to the last three months of 2010.  Savers withdrew an average of £1,750 in January, February and March 2011 compared to £1,873 in the last quarter of 2010.

The survey also found that savers are concerned about the effect that rising inflation is having on their money, with almost seven of those aged 65 or over voicing their concerns.

John Bianco, head of products at Birmingham Midshires, said: “As we head into summer, savers have reduced the amount they have raided from their savings account.

“Consistently putting money away is a great way to ensure savings are there for upcoming summer holidays.”

Consumers urged to compare savings accounts

With dozens of savings accounts in the market, consumers have been encouraged to shop around to make sure they maximise their returns.  Whilst interest rates remain low, Mr Bianco believes that there are still lots of good savings accounts in the market.

BM Savings recently discovered Tuesday between 3 and 4pm is the time when Brits are most likely to open an online savings account.  A fifth of consumers who open online accounts do so at this time, according to the BM research, which also found that lunch breaks are the most popular time for Brits to move money in and out of their accounts.