With savings accounts rates unusually high, people who dip in to their accounts to fund their trips are missing out on £3 billion a year in interest.
Britons dipping in to their savings in order to fund their holidays are missing out on billions of pounds worth of interest annually, Abbey claimed today.
The savings account provider has released data showing that UK adults spend around ten percent of their income after tax, or around £1,650 on average, on taking their annual trip. Of this group, 62 percent used their savings to fund the holidays - with over £50 billion being taken from accounts each year.
Assuming that these savings could otherwise be put in a competitive account paying up to six percent AER, this means that a total approaching £3 billion is missed out on by Britons due to these savings raids.
A surprisingly care-free attitude towards savings was also found by the firm, with 26 percent of poll respondents saying that taking a holiday - rather than putting it aside - was the best way to get rid of any "excess money" they had.
Reza Attar-Zadeh, director of savings and investments at Abbey, said: "If people cut back a small proportion of the amount they spent on holidays and kept their savings, this would make a real difference to their financial wellbeing. With savings rates at excellent levels [currently], there has never been a better time to save for the future."
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