Published on April 9th, 2013 | by Pete0
Piggy Banks vs High Street Banks
I, like lots of people, have a piggy bank at home. It’s not in the shape of a pig, it’s actually a football, but it does the same thing. Some people might save pound coins, any spare change, or just coppers in theirs. I tend to put anything smaller than 10 pence in there at the end of the day. It seems that this is a very common technique, as research by GoCompare.com has discovered that more people have a coin jar / piggy bank (33 million) than regularly use a savings account (21 million). I don’t know if this is about lack of trust of the banks, habits, or the fact that people are so uninspired by rates of interest for savings accounts.
The research found that the majority of jars contain coins of a small denomination (coppers up to 20 pence pieces) but 40% of jars contain 50p coins, 31% £1 coins and over a quarter (26%) £2 coins. The combined total of all that small change is an estimated £1.3bn- the average pot contains £38.35 but 9% of coin jars currently hold over £100. Jeremy Cryer, from Gocompare.com said: “Coin jars are clearly a convenient way of storing nuisance loose change from pockets or purses, but for many people they are also a way of saving small amounts of cash. Our survey shows that they are being used as an alternative to traditional easy access savings accounts to save significant amounts of cash, often for a specific purpose.”
We all know that interest rates for savings account are very low at the moment. But are things really that bad? Would we rather have money in a pot at home gaining no interest at all, rather than at the bank earning some (albeit not very much) interest? What do you do with your spare change?