Shoppers could save money for a rainy day
People should be offered a simple savings account at supermarket tills which they could put deposits into when they pay for their shopping, a think tank has suggested.
The Institute for Public Policy Research said it would help to encourage low-to-middle income earners to save since they are failing to take advantage of Individual Savings Accounts, which it suggests should be scrapped.
Nick Pearce, IPPR director, said: “Our research shows that people on low-to-middle incomes want simple savings accounts with few terms and conditions, little in the way of small print and paying an easily understandable reward.
The proposed savings model – called the Lifetime Bonus Savings Account – would see a bonus paid on a sliding scale, with the amount capped once the balance reaches an average of £3,000.