Savings accounts and the bigger financial picture

Anyone currently making regular payments into a savings account will be familiar with how such a facility can provide an extra level of protection against the unexpected. When times get tough, the peace of mind this safety net offers might even be something you have recommended to friends and family as a way of building up their financial stability.

But you might feel as if you're the one who has never had the opportunity to see how saving can be a great thing. But if you would like to change this, now could be a great time to get started. You can do this by setting up a savings account that is able to give you a competitive rate of interest and 24-hour online access, or you could opt for the tax

efficiency that comes with a cash.

Either way, you should soon find your monetary situation soon looks healthier,

Of course, there are many reasons why you might want to consider the above points. You could be saving for one specific big ticket purchase, or you might be getting a rainy day fund together. But there is a wider concern that you might have which could also have a significant impact on your future. Getting on the property ladder is a big concern for many and one of the most difficult parts of this is getting together that initial deposit for the, home you want. Therefore, saving toward this might make the process much easier and get you to a place where you feel more secure.

A YouGov study purchased in January 2010 revealed just how much people were now looking towards saving as a way to protect themselves in years to come. It noted that despite the recession, people were still putting their faith in products like savings accounts and . It explained the economy had not stopped people saving; in fact they were doing so now more than ever. In December 2009, it estimated the average amount Brits were putting away was 136% more than it was 12 months earlier. This equated to about £776 being saved through the final quarter of the year - up from £329. In addition, the research showed that although an estimated 38% of people admitted they had raided their stash at some point, the amount involved was significantly lower than it had been in the previous year.So whether you choose a traditional savings account or want to see the tax-efficiency a cash ISA can provide, the sooner you get things set up the better. If you do choose the latter, you will also benefit from a new ISA allowance that was introduced in April 2010. This means eligible people over the age of 16 can put up to £5,100 into this type of product.