All saving is worthwhile, says expert

Even if household cannot spare much money each month to put in accounts with the best savings interest rates, every little helps.

Keith Churchouse, director of Churchouse Financial Planning Limited, said that all types of saving is worthwhile, adding that it is also important, if people can manage it, to have an emergency fund of three to six month's wages to act as a financial safety net.

"Savings are a very emotive issue. The reason why I say that is because we live in difficult economic times at the moment and so therefore, many people's budgets are squeezed and so saving for an objective can be very difficult," he explained.

He said that Cash Isas often provide the best savings interest rates but warned that they need reviewing every 12 months to get the most competitive rates.

However, despite the economic squeeze, findings from the Office for National Statistics suggest that household savings are increasing.

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2011-10-31 13:13:22 © Moneyextra.com