Are you one of the 21% still not saving?

According to the latest Nationwide Savings Index, some 21% of people are still not saving money at all.

Whilst still high, the number of people not saving money fell from 25% in the previous month to 21% in January.

Andy Hutchinson, head of savings at Nationwide, commented “Compared to the previous month, the number of non-savers fell from one in four to about one in five. This could have been because of the recent increase in VAT meaning people spent less money and therefore had more money to save.

Alternatively, some consumers may have made it their New Year resolutions to save more frequently. Whatever the reason, it will be interesting to see in the next coming months whether this improvement can be sustained.”

On a positive note, the number of regular and occasional savers increased to 79%, making it the highest level since September 2009.

There are still good opportunities to be had if you are looking to invest your money this year, particularly if you are able to lock some of your savings into long term bonds.

Ultimately decisions need to be your own, savings accounts to consider include

• Nationwide e-Savings Plus are currently offering 2.00% gross p.a./AER variable
• ICICI are currently offering their HiSave Fixed Rate Account with an interest rate of up to 4.7% AER
• Alliance & Leicester Online Saver Issue 7 is currently offering 2.75% gross p.a./AER including bonus.