The first thing consumers need to do when looking for a savings account is work out exactly what it is they are saving for, according to Halifax.

Jason Clarke, spokesperson for the bank, explained that different products suit different needs as a fixed-rate product is best for long-term goals, whereas a regular savings account is a wise move for people who are saving for a specific thing such as a wedding or a holiday.

"Start thinking about what you are aiming for two or three years down the line and then have smaller amounts in emergency funds, to deal with things like a bust pipe, or just when you fancy a splurge," he said.

For savings which can be relied upon in an emergency, an internet account often offers instant access and a "decent" interest rate, added Mr Clarke.

Online savings accounts can give better rates than other products because it costs less for building societies and banks to run them, he explained.

UK payments association Apacs reports that the number of UK adults using online banking services increased by 174 per cent between 2001 and 2006.

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