Youngsters putting more money into savings accounts

At least a third (34 per cent) of people aged between 18 and 24 are putting money into their savings account as a result of the recession, while 23 per cent are saving less, suggests a new report.

HSBC polled 1,100 adults to find out how their spending and savings habits have changed as a result of the economic situation.

It was found that while more than half of young people have changed their savings habits, only 28 per cent of older people have changed the amount of money they put into account.

Londoners were found to be the most likely to save more (24 per cent) compared to the West Midlands which was most likely to save less (25 per cent).

The bank found that in total 68 per cent of Brits have not changed their money habits at all despite 76 per cent of consumers being concerned about their financial situation.

Richard Brown, head of savings for HSBC, said: "With nearly eight in ten Britons worried and insecure regarding the current economic turmoil you would expect them to be spending and borrowing less and saving more.

"People either have their 'heads in the sand' and do not realise the need to change, or that they have simply decide to stoically ride out the recession by refusing to alter their ways."

Those who do want to put more money into a savings account in order to create a financial safety net may like to use moneyexpert.com, a price comparison site, to find the best one for them.

There are different types of savings account available including:

• An instant and easy access account have variable interest rates, usually based on the Bank of England Base Rate (BEBR). These accounts can be started with just £1 and accessed at any time.

• Notice accounts which require the customer to notify the bank in advance if they wish to take money out.

• Regular deposit accounts expect customers to invest a certain amount of money each month.

• Fixed rate accounts may be a good option for when the BEBR is low as the interest is set for a period of time.