Monthly saving reaches two year high

The number of UK people who save every month has reached a two year high, according to a survey from NS&I.

Although the economy is still recovering, monthly saving has returned to pre-credit crunch levels, NS&I says.

The proportion of the population who save each month has hit 50% for the first time since winter 2007, rising from 44% during winter 2009/10.

Simultaneously, the average amount saved per person each month is now £85.21, up from £81.94 last quarter. People currently save on average 6.9% of their income, up 0.65% from winter 2009/10.

"It is encouraging news that many of us are managing to put a few more pounds away each month," says Tim Mack, savings spokesman, NS&I.

"However, our latest Savings Survey showed nearly a third of us still don't feel confident we have enough money to get by in an emergency, and it is only by maintaining our commitment to savings that we will achieve this peace of mind."