Lender sees savings ‘increase’

An increasing number of people are ensuring they have money saved “for a rainy day”, one lender has stated.

Alliance and Leicester’s manager for savings Hetal Parmar explained that the current financial climate is making people “think very seriously about spending” and make sure they have money set aside should they need it in future.

“A good rule of thumb is to have about three months’ income saved,” he remarked, noting that this will be beneficial “if your car breaks down or if there is a hole in the roof”.

And he urged those looking to save to use the internet to research which savings and current account is best for them, noting that price comparison websites are a good source of information.

Recent research from Abbey Credit Cards found that the amount of disposable income available to people has fallen nearly 30 per cent over the last two years.

This could result in an increase in the number of people seeking debt advice