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Economic worries prompt savings

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More people are saving money on a regular basis than at any time in the last two years, according to new research.

Over a half of people are setting aside money, a study by National Savings and Investments found.

Average monthly savings now stand at £87.37 a month for the third quarter of the year, up from the £85.21 recorded in the previous quarter.

The move towards increased savings has probably been driven by fears over job security and the need to cover unexpected household bills.

The study also revealed that the amount of money people are saving as a percentage of monthly incomes has reached its highest level in two years.

Tim Mack, a spokesman for NS&I, said: “The last two years have been hard for many people with many factors hitting people’s savings hard. These factors could be the reason people are now trying to save more, to ensure they have enough money for unexpected events such as job loss or unforeseen bills.

“We all face the possibility of situations we simply have no control over so it is essential that we are prepared for any emergency that will require immediate access to money. People may expect things will be tougher financially in the years ahead and will want to prepare themselves for the future.”