Financially savvy Brits are saving £310 on average each month – or £12 billion collectively – new research has revealed.
More than three-quarters of people (76%) of people are putting money away for a rainy day each month, with nearly half of consumers (48%) using a regular savings account, according to Moneysupermarket.com.
Those aged 18 to 34 – perhaps due to a desire to save for a house deposit – were the most conscientious when it came to squirreling away cash, saving on average £438 a month, while those aged 34 to 54 put away £297 and the over 55s £225 a month.
Meanwhile, because of low interest rates, more than a fifth (21%) of Brits are willing to take some sort of risk with their money in order to gain better returns. Some 13% have invested in a stocks and shares Isa.
However, low interest rates have also led to some consumers being put off saving. Some 17% said they have chosen to put less money into their savings, while 16% admitted they withdrew cash from their savings and spent it because of poor returns.
The best rates
If you are fortunate enough to be in a position to save, then according to Moneywise.co.uk/compare, one of the best regular savings accounts on the market is West Bromwich Building Society Fixed Rate Regular Saver, which will give you 3.3% on your cash for 12 months up to a maximum of £1,200, while Buckinghamshire Building Society's Simple Regular Saver comes with an AER of 2% on all savings up to £400,000.
If you are looking at a cash Isa, then Nottingham Building Society's Isa (Issue 5) comes with an interest of 3% over the tax year, up to the maximum Isa allowance of £15,240, while Coventry Building Society's Isa comes with an AER of 2%.
If you are over 65 then you may want to consider NS&I's popular Three Year Growth Bond, which also comes with an interest of 4% over the 36 months term. The bond is on sale until 15 May so you'll have to act quickly if you want to take advantage.
Check out moneywise.co.uk/compare the best savings accounts for you.