Consumer: More people are now regularly saving cash

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More people now feel able to put money into savings regularly, a report has found, in further signs that consumers’ finances are improving.

Just over two-thirds of people have managed to save over the last year, according to the Lloyds Bank Savings Report.

And 44 per cent of people are putting money away at least once a month – up from 37 per cent when similar research was carried out in the last three months of 2014.

Nearly one in five people said they have saved £500 or more in the last month.

Cash Isas, which are ring-fenced from the taxman, continue to be the most popular way to save, followed by instant access savings accounts, the research found.

Of those who have been unable to save in the past year, around two-thirds have had no spare cash to do so, while nearly 30 per cent have been putting their money towards paying off a debt.

Philip Robinson, savings director for Lloyds Bank, said: “We are seeing a shift in confidence when it comes to people’s ability to save.

“For people who may not be as confident with their current savings habits, it’s important to try and save a small and regular amount each month. This can help to build a strong savings pot over time.”

Despite their improving confidence, savers still face a tough time sniffing out a deal that offers lucrative returns.

Financial information website Moneyfacts said that in the current low interest rate environment, a “staggering” 138 savings accounts on the market pay a rate of 0.5 per cent or less.

Charlotte Nelson, a spokeswoman for Moneyfacts, said: “Savers now need to shop around to chase down decent accounts and act fast when they find them.

“Good deals can get oversubscribed really quickly, so it pays to act before the deal is reduced or withdrawn completely.”

More than 6,200 people aged between 18 and 75 years old were surveyed for the research.

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