According to NS&I’s latest Quarterly Savings Survey, we are now saving 7.17% of our income each month on avaerage, equivalent to £90, up from 7.08% in the previous quarter when savings reached their lowest level in over a year.

The increase is being driven mainly by women and people in their late 20s and early 30s.

Those in the 25 to 34 year-old bracket are squirrelling away the most, proportionately speaking, at 8% of their income each month.This means £103 in real terms, and is a rise from 7.24% in the previous quarter.

As a percentage of income, women are saving 7.65% of their monthly earnings compared to 6.82% for men. Women are putting away more now than in the previous quarter (7.36%) as well as more than this time last year (7.51%).

John Prout, NS&I retail customer director said:

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“It is encouraging to see this improvement in savings over recent months, and it’s particularly good to see such motivation from younger people. Setting goals is an effective way to get into a regular savings habit. Not only do they encourage people to stay motivated to save, they provide a real sense of achievement once a goal has been reached.”