Savings and ethnic minority households

Authors: Elaine Kempson
Funded by: Personal Investment Authority
Published by: Personal Investment Authority
Publication date: 1998

While existing research suggests that low-income ethnic minority households' patterns of savings have much in common with others on low incomes, it is also clear that there are some distinctive patterns of saving and investment among Britain's ethnic minorities.

This report investigates patterns of saving in Britain's ethnic minority communities, focusing particularly on African Caribbean, Pakistani and Bangladeshi households, as they are known to make least use of formal savings channels. It examines the extent and circumstances under which low-income ethnic minority households save; the purposes for which they save; the mechanisms (both formal and informal) they use to save; which informal channels are either specific to particular ethnic minority groups, or much more common among them; and the potential for developing formal savings products to replace some of the informal channels for saving.

The evidence suggests that:

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