Many Brits still save money in a jar

Despite the numerous options for saving in Britain, almost a third of people still go back to basics and save their cash in a jar or tin at home. In fact, this is the fourth most popular saving option among Brits, according to research conducted by SunLife.

You may be surprised to find that it's the younger generation that are most likely to use this saving method, with 43 per cent of 18 to 24-year-olds saving in a jar compared to just 24 per cent of over-55s.

Of those who have just £100 to £150 in savings, 43 per cent will save in a jar, while 47 per cent will keep this in their current account. Just seven per cent hold premium bonds, while one per cent have notice savings and two per cent save in an equity ISA.

It's not just those with little to save that do this in a jar though. 18 per cent of people who have £100k or more still use a jar to save, alongside other savings methods. The most popular among this group is fixed-term savings (83 per cent), while more than half holding savings in stocks and shares ISAs (58 per cent) and 56 per cent hold premium bonds.

Of those that do save, £26,785 is the average amount held, but this is skewed quite heavily by the over-55s who have almost five times the savings (£49,833) that 18 to 44-year-olds do (£10,436) and almost double the average amount held by 45 to 54-year-olds (£28,651).

Having a family also heavily influences the amount of savings that people have. Families who have children under the age of 11 have an average of £11,470 in savings, compared to an average of £33,960 in families with children aged 12 to 18. Empty nesters typically have the most though, with £48,266 on average.

Worryingly, more than a quarter of Brits admit to having no savings at all. The majority say this is because they don’t have any spare cash, either because they spend all their money each month (59 per cent) or they use any spare to pay off debts (34 per cent). However, 19 per cent say the reason is because "they haven’t got round to it",  while five per cent say they "don’t see the point".

This is a much more common theme among the younger generation, with 40 per cent of 18 to 24-year-olds admitting to not having any savings compared to just 12 per cent of those aged 55 to 70.

Ian Cooper, head of savings at SunLife, said: "While putting pennies into a jar can be a good way of stopping yourself from spending loose change, jars and tins were never intended as secure homes for hard earned cash.

"Not only is it very tempting to raid rather than leave for a rainy day, but it isn‘t earning a penny in interest and doesn’t stand a chance against inflation."