Rural savers stash more than city dwellers

The difference is as great as 25% in some areas.

The findings of the most recent Halifax Savings Barometer show that the overall average savings balance in rural areas of England and Wales is 17% higher than in urban areas (£8,060). The highest rural savings balance of £10,046 in the South East, is over a third more (37%) than the lowest average urban savings balance, found in Wales

Whilst rural savers have managed to squirrel away the equivalent of 29% of local average annual earnings in savings accounts, those living in urban areas have a savings balance equivalent to less than a quarter (24%) of their yearly income.

Richard Fearon, Head of Halifax Savings, comments:

 "The fact that across the country people living in urban areas are putting away less than those living in the country would suggest a very different attitude towards saving amongst these groups.

This difference is further highlighted by the fact that those living in rural areas have not only deposited a greater proportion in relation to local annual earnings, but they have managed to do so when some of the most significant costs, such as property, are also significantly higher in these areas1."

Savings as a proportion of earnings

The disparity between rural and urban savings remains evident when compared to average earnings at a local authority level also.

Savers in rural Waveney and urban Christchurch both have an average savings balance equivalent to 53% of local average annual earnings, the highest proportion in England and Wales.

Whilst the lowest savings balances as a proportion of earnings in rural areas is 26% (Forest of Dean and Waverley), in urban areas this falls to just 13%, with average savings balances in Islington and Hackney at £6,872 and £4,298.

Highest and lowest savings balances

Savers in rural areas of the North West and West Midlands have an average savings balance that is a quarter higher than their urban neighbours, while the smallest difference in rural and urban savings balances is in East Anglia (10%).

Following the South East at £10,046, the highest average balances held by savers are in rural East Anglia (£9,883) and rural parts of the West Midlands (£9,509). The highest average saving balance held by urban savers is also in the South East and stands at £9,031.

The lowest average savings balances are held in the urban areas of Hackney (£4,298) Newham (£4,481) and Manchester (£5,007), while the lowest average savings balance in a rural area stands at £6,548 in North Warwickshire.

Richard Fearon, adds: 

"Even though it can be difficult to make saving a priority, by saving even a small amount each month, over time you can build up a financial cushion that can cover unexpected costs or help contribute to planned expenses."