Nearly a half of savers in the UK have found that they have had to dip into their savings to get by during the credit crunch – but with an offset mortgage, there is no need to dip into savings when your money earns you profit, every month.

A recent survey from Fairinvestment.co.uk found that the average amount saved each month is £128, a fall of more than £10 compared to the £138.64 that people said they saved each month back in August last year. But the study found that 47% of savers have had to use some of their savings since the credit crunch began. The amount used ranges from between 91 and 100%, which 5% of respondents admitted to, to less that 10% of the amount saved, which one in five savers have had to use.

The website also found that the way that people save has also changed: as just under a third of savers say they have altered the way that they save in some way. In fact, 8% of savers said they have split their savings to reduce risk, while 6% have decided to keep them in cash at home – the study found that, amazingly, 20% of savers think that the safest place for their cash at the moment is at home in a safe or under the bed.

Fairinvestment.co.uk chartered financial planner Sharon Bratley says: “Savers have so far been some of the hardest hit victims of the credit crunch, particularly as savings interest rates continue to fall faster than mortgage rates and banks struggle to keep their heads above water.”

If you think the best place for your money is under the bed, talk to a financial adviser as soon as you can. Because it’s not – aside from savings accounts and investment vehicles, the best place to put your money right now is in an offset mortgage. The rates are low, and as soon as you start offseting your savings, that rate will only fall further, saving you money every month.

SOURCE: Fairinvestment.co.uk, 6/04/09

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