Many younger generations are starting to realise how important it is to put cash away in savings accounts, one expert has suggested.

Anna Sofat, chief executive officer at Addidi Wealth, highlighted that the message is starting to get through to people that they need to save for the sake of their financial security.

"With more student debt and the need for larger deposits for first homes, the reality is that it is difficult for many youngsters to prioritise pension savings over and above their immediate or short-term objectives," she added.

Ms Sofat's comments come after the GB Consumer Confidence index by the Nielsen Company and the British Retail Consortium found that the UK is become savvier with its savings.

It discovered that although interest rates are low, the most popular option for spare cash is to put it into savings accounts, with 34 per cent hoping to put money aside.