Nationwide's Savings Index shows changing attitudes

Nationwide Building Society's Savings Index has climbed to the highest level since November 2008, signifying that an increasing number of consumers are now putting their savings accounts to good use.

The Savings Index increased by ten points to 87 in September, with the Importance of Savings Index hitting 91 points after rising by five points during the month, meaning that an increasing number of consumers view saving favourably.

Some 57 per cent of consumers believe that it is vital for them to personally save, a two per cent increase from August, while 20 per cent are of the opinion that this is the best time to save, in light of the economic climate.

Thanks to a two per cent rise, 17 per cent of savings accounts holders admit that current government policy encourages consumers to save, although nearly half (48 per cent) think otherwise.

Focusing on the future, more people (21 per cent) say they will be putting away more money than they are saving now six months down the line, which is a three per cent increase from August.

However, 17 per cent of consumers believe in six months time they will be saving less than they are at the moment, although this group has reduced by three per cent from August.

According to Andy Hutchinson, head of savings at Nationwide, the significant growth in the savings index may be down to a similar increase in consumer confidence in September.

"It is possible households are becoming increasingly confident that the recession is coming to an end, even though their positive sentiment may be premature," he explained.

"This could have boosted confidence in consumers' ability to save in the future and it will be particularly interesting next month to see the impact of the recent investment savings account (ISA) changes for the over-50s."

He went on to add that "while the latest increases recorded across the savings indices are encouraging, the falls seen last month serve as a reminder that we should remain cautious because the market may not yet have stabilised".

Meanwhile, there is still anger towards banks among savers who feel the institutions have not shown any remorse for plunging the economy into the current crisis, according to Which?.

Which? head of campaigns Louise Hanson explained that the anger stems from a feeling that banks are still treating consumers like second class citizens despite being bailed out by taxpayers, with "poor customer service and shoddy sales tactics" among the grievances.

"Consumers are wary of what the banks say. It's not going to be easy for the banks to regain the public's trust, but a good start would be for them to say sorry - and mean it."