The UK banked a record amount of savings between April and June of this year new figures have shown, with some £38.6 million put away for a rainy day.

Despite the record figure, the IFA Promotion report also noted that debt remains high – suggesting that people are putting money away while being charged interest on loans.

"This new-fangled allegiance to saving is all well and good, but only if we show equal commitment to controlling our debts," said IFA Promotion boss David Elms.

"People are beginning to take heed of repeated calls to start saving but seem to be eliminating spending and borrowing behaviour from their budgetary considerations.

"The simple fact is that if we don't stop borrowing money, the positive effects of saving will be negated."

The UK borrowed 48p for every pound saved between April and June, up from just 16p borrowed to every pound saved in the first quarter of the year.

"This quarter's results therefore only go to show that the economy is in a state of flux and that a sensible budgeting mantra is yet to be embedded in the British psyche," said Mr Elms.

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