Monthly savings: One in four Brits don’t see the point in banking their leftovers

When it comes to monthly savings, one in four Brits don’t see the point in banking their leftovers - if they’ve only got a few pounds to put away. Research shows that a staggering amount of UK savers are ignoring expert advice, which says to start saving no matter how much.

According to research from smart money app Plum, 12 per cent of people polled - via OnePoll.com - believe it’s not worth putting anything less than £100 into savings. The research of 2,000 adults found 57 per cent struggle to find the motivation to put money aside to grow. Meanwhile, nine per cent check their online bank accounts multiple times a day.

Victor Trokoudes, founder and CEO of the saving and investment app, said: “If you’ve been putting money away for more than five years, that’s excellent – but not everyone has the same motivation, especially if we’re talking small amounts of money left at the end of the month.

“But there really is no time like the present – even £20 a month, over the course of just two years, will add up to close to £500 and that’s before any interest.

“It can be tempting once you get to the end of the month to treat yourself to something or just roll over what’s left into the new month’s expenses, he added. “But if there are some extra things you’d like to have in the next year or two, the savvy will typically know when to spend and when to squirrel it away.”

The study also found only 39 per cent describe themselves as savvy savers and are slightly better at putting their funds aside for short-term goals than long-term ones. But 27 per cent reckon they’re more likely to spend any available funds left over at the end of the month if they’re not actively saving for a specific goal.

It also emerged just 14 per cent know what a Money Market Fund is - an increasingly popular alternative to traditional savings accounts that focuses on short-term, low-risk investments with interest tending to closely reflect central bank rates.

A quarter (24 per cent) incorrectly believe it is something that specialises in foreign currencies, while seven per cent think it’s something that allows you to change out-of-date cash for new money. Victor Trokoudes, from Plum added: “These days you definitely don’t need to lock your money away for years to take advantage of higher interest rates – although some people think that you do.

“For example, putting money into a flexible alternative like a Money Market Fund could be a good way of reserving it for shorter term goals, especially if you think you might need to dip in from time to time.

“It doesn’t matter how small your initial investment is - with time and patience, it can grow into something more substantial in as short a period as one or two years, taking advantage while interest rates are high”