Savers look for flexibility as well as returns

Whilst a good rate of interest is the most important factor cited (92%), there is division when it comes to other features, according to research from Alliance & Leicester Savings.

For many savers (57%), their account is something to raid to top up their spending. A quarter (25%) say that they have dipped into their savings three or four times over the last year and almost a fifth (18%) have done so more than six times. Almost a fifth (19%) of savers say they often run out of money at the end of the month and have to dip into their savings to survive and one in eight (13%) are increasingly finding that they need to dip in to pay for day-to-day living costs and household expenses. For these savers, an instant access account is ideal, perhaps linked to their current account.

Others are looking to save longer term, looking for a bit more discipline in their savings - with 11% citing the desire for something to stop them dipping into their savings. A regular savings account could be the answer, or one which makes it more difficult to get your money out.

Silver savers rate flexibility highly - but for eight in ten (79%) this flexibility includes the option to take a monthly income, or add to their initial investment (58%). For older savers, who often have higher balances, tiered rates are seen as a plus by 62%.

Hetal Parmar, Manager for Savings at Alliance & Leicester, said: "It's important to choose savings accounts that meet your needs and give you the right degree of flexibility. There are a range of different accounts available, including so-called ‘disciplined' savings accounts that encourage savers not to dip into their savings by paying a high rate of interest for each month a withdrawal is not made.

"Although everybody's savings needs are different, what's essential at the moment is actually having some money set aside to fall back on if you really need it. Savers may find it useful to spread savings across several pots, each for a different purpose. This will enable savers to choose the features that they want, to suit their needs, and provide peace of mind."

Alliance & Leicester offers:

eSaver Issue 2 for long term, disciplined savings, with a great return of 6.30% gross pa/AER.
Online Tracker, paying 6.00% gross pa/AER, which is ideal for day to day savings without the need to worry about the rate.

Alliance & Leicester's suggestion for saving successfully:

First of all, have a pot for your day to day needs, this could well be a current account with a high rate of interest or a linked savings account, but make sure that you will be able to access the money without penalty as soon as you need it.

Next, it really makes sense to have a rainy day fund for unforeseen emergencies. A good rule of thumb is to have about three months' income saved in it.

Thirdly, if you want to save for any specific items such as a new car, holiday or wedding, set aside a specific pot for this - if you have a specific timeframe for saving, so much the better, as you may be able to take advantage of longer term accounts with higher rates of interest.

And lastly, think carefully about your longer term financial needs and start building up a long term fund.