Back to the savings habit for Britons

The average person claimed to set aside 776 during the three months to the end of December, up from just 329 during the same period 12 months ago, according to Birmingham Midshires.

But despite the dramatic improvement in savings levels, people are still depositing less than the 849 they set aside during the second quarter of last year.

Around 38 per cent also admitted they raided their savings during the three months to the end of December, withdrawing an average of 1,724 each.

Nearly a quarter of people who raided their savings did so to pay for emergency repairs, while 17 per cent said they had overspent from their current account and 16 per cent used the money for a holiday.

John Bianco, head of Birmingham Midshires savings products, said: "It is encouraging to see that people are taking their savings seriously, putting away more and raiding less.

"In the current economic climate, people have revisited their savings habits, with a marked increase in people saving for a rainy day."

The proportion of people who said they were simply saving for a rainy day has risen from 18 per cent in the second quarter of last year to 27 per cent now, making it the most common reason people gave for saving, followed by a holiday at 25 per cent.