Quick links to latest articles:

Could the money in your bank account be put to better use?

By Joel Stanier

4 April2021

Most of us would admit we could be managing our finances a little bit better. Even those of us with a reasonable salary and a well-planned budget will still have the occasional financial slip-up.

This has become all the more common in recent years, with many people's earnings lagging behind inflation, and with many of the important costs of living - such as bills - rising sharply in recent years.

But research by savings provider NS&I suggests that the way people handle their finances is finally getting better. In February this year, the average person put 7.66% of their income into savings each month - the first increase since spring 2011.

This means people are saving an average of 95 a month, compared with 88 at the end of 2011.

John Prout, NS&I Retail Director, said: "While many people found saving a challenge last year, our data shows that there has been an improvement in recent months. With saving reaching its highest levels since spring 2011, it appears that people are taking action and committing to setting more money aside for the future."

An expert at Think Money commented: "Growing pressure on people's finances in recent years means that many people have struggled to save as much as they'd like to. In some cases, people need every last penny in their bank account just to get by.

"However, some people may find that planning their budget more carefully could help them to free up a bit of extra cash for saving. Even if you're only putting a few pounds a month aside, it's better than nothing at all.

"Switching energy providers and cutting back on things like takeaways and nights out could also help. Or for people who struggle in general to manage their money, there are bank accounts out there that could help them do this."

Tags: bank, banking, budgeting, inflation, savings

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.