The 2012 HSBC Savings Map of Britain reveals that more than seven in ten (71%) Brits saved in 2011 despite interest rates remaining low, indicating recognition of the importance of having some money set aside.
Only 4% said that the low rates are a disincentive to save and only 3% say they would rather spend than save their extra money.
People still value the security of an account with a bank or building society, with 65% of people holding savings in a deposit based account.
By value, the average savings portfolio was 46% deposit based, 17% alternative asset classes, 17% bonds, 16% equities and 4% in offset savings.
The largest group of those who do save were able to invest more than they withdrew in 2011 and this was higher than in 2010 (35% vs 32%).
However, despite the drive to save, not all Brits are managing to save more than they withdraw and the nation is divided into four distinct, comparably sized groups, according to savings success.
The groups of ‘Struggling' (23%) and ‘Static Savers' (23%) represent the "squeezed middle" of middle income families whose finances are coming under pressure due to sustained high cost of living, frozen salaries, and a rise in part time workers and unemployment, affecting their ability to save.
Twenty nine per cent of adults are not saving at all.
Those with children of school age have particularly felt the squeeze. The 35-44 year olds were the only group that were more likely to say they withdrew more than they invested than vice versa in 2011 (34% vs. 31%). Thirty four per cent of 45-54 year olds also withdrew more than they invested.
While the savings to income ratio generally increased with age, for those aged 35-44 it dipped slightly; the ratio has fallen from 31% in 2010 to 21% in 2011 for that age group.
The amount that regular savers aged 35-44 are putting away each month dropped by almost 10% between 2010 and 2011 from £247 to £223.
Further highlighting their plight, a fifth (20%) of 45-54 year olds and 16% of 35-44 year olds said they expect to save less in 2012 as they need more money for every day living costs.
Despite the difficulties, savings intentions going forward remain positive; 60% of all age groups intend to save more or the same amount this year as in 2011. However, (probably due to the economic circumstances), nearly a quarter (23%) are unable to say what they hope to save.
Aware of the uncertain financial climate, 21% of people now say that saving for a rainy day is their priority. In contrast, long term goals are losing out, with one in ten (12%) planning to save more over the next 12 months to contribute to their long term goals, compared to one in five in 2010.
Bruno Genovese, head of savings at HSBC, commented: "2011 was a tough year for savers given the harsh financial climate, but it is positive to see the substantial effort made to save in spite of this.
“Unfortunately, the high cost of living forced many families in the squeezed middle to dip into their savings pots, leaving them with less than they started with.
"While this year is also likely to prove a challenge for the majority of British savers, intentions to save remain high, with people aware of the need to build up a savings cushion in case of a rainy day or to achieve their long and short term goals. The Savings Map findings all point to Brits saving where they can afford to in 2012."
