People throughout the UK dipped into their savings accounts in order to fund Christmas 2010, new figures suggest.

The latest Saving Britain research from BM Savings reveals that 23 per cent of festive spending was conducted using cash that was stowed away for a rainy day.

Furthermore, it found that ten per cent covered the cost of Christmas by putting money away in savings accounts throughout the year.

"For those trying to keep a New Year's resolution, now is the ideal time to start saving with a number of great rates appearing across the market," explained John Bianco, Head of Products at BM Savings.

He emphasised that Christmas can be a very expensive time, so it is reassuring to see that some people are approaching it sensibly.

Dave Rodgers, managing director of the Debt Advice Foundation, recently told parents to start putting money aside for their children as soon as possible to avoid any financial shocks later in life.