Saving is essential to prevent risk of financial hardship

A new study has highlighted the importance of having a nest egg earning the best savings rates.

Unbiased.co.uk revealed that a third of adults in the UK would face financial hardship if they lost their job.

Some 15 million people in the UK would struggle if they were to lose their main source of income, with the issue considered a particular problem for 35-54 year olds.

Over the past year 42 per cent of Brits claimed to have learnt that banks do not necessarily act on their behalf, while 26 per cent said they had realised the danger of putting all of their eggs in one basket.

"The continued low interest rate and increasing inflation are having a severe impact on returns on savings while the housing market remains volatile. It's a critical and unpredictable time for consumers who do not know which way to turn for the best," said Karen Barrett, chief executive of unbiased.co.uk.

Jason Riddle, co-founder of Save Our Savers, added that in the current climate it is important to build up money in accounts with the best savings rates.

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2011-09-14 13:03:38 © Moneyextra.com