More people now view saving as important

Consumers' attitudes towards saving are changing and now many consider putting money away on a regular basis as an important thing despite the fact that pessimism still abounds, according to new research.

According to Nationwide Building Society, consumers are concerned about how much they are saving at the moment and the regularity with which they do so.

This is one of the factors that have resulted in the organisation's latest Savings Index declining by three points to the lowest level since the exercise was launched in June 2008.

A big number of people in the UK are unable to put money away, according to the index, which shows that more than one in four individuals (26 per cent) do not save at all, while only less than half (46 per cent) manage to save on a regular basis.

The number of those who admit to saving less than they should be has also increased to 60 per cent from 56 per cent six months ago, which shows that consumers are still struggling, according to Andy Hutchinson, the head of savings at Nationwide.

Despite the difficulty, more people seem to be aware of the advantages of saving because the Importance of Saving Index has increased significantly, notching up 11 points, with 60 per cent of consumers viewing saving in general as important.

There may, however, be some impediments, according to Mr Hutchinson.

"Rising unemployment and falling income growth clearly make it difficult to save, while the low level of interest rates may have increased the incentive to prioritise debt reduction over deposit accumulation.

"Although the increase in ISA limits announced in the Budget should help to boost longer-term levels of savings, it may not have much impact in the short term since very low interest rates are limiting the extent of the tax benefit."

However, he went on to state that it is a good sign to see that "there has been an increase in confidence about the future ability to save, which is consistent with recent rises in consumer confidence about the overall economic situation."

An increasing number of consumers are optimistic about the future as the index shows that nearly one in five (19 per cent) of British consumers believe they will be saving more than they are currently stashing away in six months time.

There is a lot of choice for consumers who are looking for the ideal savings accounts, with institutions such as ICICI Bank UK, which was given the Best Monthly Interest Account Provider accolade in the 2009 Moneyfacts Awards, among those to consider.

Others include Harpenden Building Society, which won an award for the Best Children's Account Provider, and Coventry Building Society, which walked away with the Best Over 50s Account Provider gong.