A report by NS&I revealed Brits are now saving 8% of their income each month – or £104 in real terms. 

It is the first time since Spring 2011 that the average amount Brits are saving each month has broken the £100 barrier, and is the highest amount recorded since the NS&I Quarterly Savings Survey began in Winter 2004. 

The findings found the number of Brits not making any savings each month has decreased with now one fifth (20%) putting nothing aside, compared to 25% in the previous quarter.

All age groups have improved their savings levels – apart from those aged between 35-44- but it is the younger generations, in particular, that are driving the savings trend upwards.

Those in the 25 age group are now saving 9.29% of their incomes each month, £125 in real terms – well above the national average of £104 and the highest figure recorded since Winter 2010. 42% of savers aged between  25-34 are using savings goals to help them save, with of these 59% of saving for a home, a mortgage or for home improvements.  

John Prout, NS&I Retail Customer Director, said: “It is really good to see the average amount saved per month has risen over £100, especially as the cost of Christmas can often be felt for some time after. The research suggests that most age groups in Britain are saving more and this corresponds with an increased use of savings goals from last summer, which can only be an encouraging sign for the future.”