Britons have made savings their top priority since the onset of the credit crunch with the younger generation leading the way, according to Alliance & Leicester (A&L).
Its research found a third of Britons have cut back on spending to save more, with 36% of young people putting their savings first. Furthermore, one in eight of people are spreading their savings around different banks and building societies after the collapse of several high street favorites.
Almost half of Britons research and choose savings products using the internet with 56% of younger people looking online. Almost a third of people base their decisions on advice from colleagues, friends and family, while over a fifth of people seek professional advice from an IFA.
The research also found 70% of respondents place great importance on online account management for their savings, with 61% drawn to online applications. However, more then two thirds still value local branches and 35% like to manage their account over the phone.
Hetal Parmar, manager for savings at Alliance & Leicester, believes it is encouraging people have responded to the credit crunch by putting sensible measures in place.
"Our research also shows that people are trying to become more financially astute and many are 'doing it for themselves' by researching online, perhaps driven by the convenience and choice the internet offers.
"The rise of comparison sites and online personal finance forums has certainly made it easier to find a good savings deal," Parmar adds.
A&L recommends having an easily accessible pot for day-to-day needs, a rainy day fund with about three months income saved and specific pots for items such as a new car or holiday.
The firm also urges people to think carefully about longer-term financial needs and to start building up a longer-term fund.IFAonline
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