Average top 10 easy access savings rate now stands at 3%
With Britain falling into a double-dip recession, and hard pressed households struggling with the high cost of living, MoneySupermarket is encouraging consumers to start a savings habit and put some money aside on pay day in order to be prepared for a rainy day.
Kevin Mountford, Head of Banking at MoneySupermarket, said: "The recent news that Britain has once again fallen into recession suggests that the difficult financial situation we have seen over the past few years will continue. The pressure on Britain's wallets hasn't changed and it is important to be prepared in case your circumstances change, for example, if you lose your job, or if your employer cuts overtime.
"Having some money set aside for a rainy day or in case of an emergency can help you keep your head above water should the worst happen. In an ideal world, you should have at savings worth at least three months' salary, but for many this may seem an ambitious and unachievable goal. However, in the current climate, every penny counts and putting something away, no matter how small, on pay day can soon add up. Getting into the habit of putting money aside in a savings account on the day you get paid and budgeting to make the most of your remaining salary is vitally important."
Choosing a market leading savings account can help maximise any money put aside. For example, depositing £300 per month in the market leading Poppy e-saver account with Coventry Building Society paying 3.15 per cent could earn and additional £60 in interest over 12 months.
Existing savers should also check the rates they are currently being offered as they may find a better deal elsewhere. For those who have an easy access account which included a short term bonus, it's very important to check when this bonus expires as the rate will typically fall and savers should look to switch.
Kevin Mountford added: "Many would-be savers have also been put off saving due to low interest rates, but it is still possible to gain decent returns with the current top savings rates paying over six times that of base rate. It's important to make sure you are on the best deal for your needs and start looking at ways you can be more savvy with your spending - all steps which can help to free up some vital extra cash. Using MoneySupermarket to switch your major bills can help save over £1,000, more than enough to help kick start your savings pot."