Dundee named 'savings capital' of Scotland

Dundee has emerged as the ‘savings capital’ of Scotland with Dundonians saving more regularly than households across the rest of the country.

More people in Dundee save regularly than anywhere else in Scotland.

Over six in ten households in Dundee manage to save at least once a month, more than the national average for Scotland of 60 per cent and the UK average of 59 per cent. Glasgow recorded the second best savings rate at 60 per cent, followed by Edinburgh and Aberdeen, where 58 per cent of residents save regularly.

The most popular savings vehicle for regular monthly saving among Scots is a bank or building society savings account, according to Scottish Friendly’s latest Cost of Cash ISA report, followed by a pension and a bank or building society current account.

In Dundee specifically, almost half of people save into bank or building society savings account each month and 38 per cent put money towards a pension.

Respondents in Dundee are marginally more optimistic about their finances with nearly a third saying they think they will be better off in 12 months’ time, compared to an average of 31 per cent for the whole of Scotland.

However, more than six in ten Dundonians are concerned about how leaving the EU will affect their family’s finances, which is slightly lower than the national average for Scotland or two thirds.

Kevin Brown, savings specialist at Scottish Friendly, said: “It’s really positive to see so many people across Scotland making regular monthly savings as this could be an effective way to build up a pot of cash quickly and sustainably.

“Households are clearly wary of what impact the political and economic headwinds facing the UK may have on their own finances.”

The report found that the current political and economic uncertainty is also influencing Scots’ perceptions when it comes to saving and investing, with over half stating that their view of the situation makes them less likely to invest in the stock market.

Only 15 per cent of Scots say they have ever saved into an investment ISA and just seven per cent do so on a regular monthly basis. This represents a stark contrast to cash ISAs which 39 per cent of Scots have put money into and more than one in five do so each month.