A new survey has found that Brits are continuing to increase the amount they save, despite the struggling economy and high inflation.  More people are putting money to one side than they were last year, with thousands of homeowners using offset mortgages to maximise their savings.

More people saving money than in 2010

The study by investment, savings account and pension provider Standard Life found that the difficult economic situation has prompted more and more people to save.  41 per cent of those questioned said that they were saving more or equal to the amount they were saving this time last year.

The survey also found that almost half (46 per cent) of 18 to 24-year-olds were saving more than in 2010.  51 per cent of 25 to 34-year-olds aid they were saving more than last year and 41 per cent of over 55s had increased their savings in the last twelve months.

Standard Life’s head of pensions policy, John Lawson, said: “People don’t have to set aside a lot of money to feel the benefit of an investment in the future.”

Offset  mortgages helping savers make millions

A popular way of maximising savings over recent years has been through the use of ‘offset’ mortgages.  Offset mortgages allow homeowners to combine their mortgage account with their savings account, reducing the amount of interest paid on their borrowing.

Research from First Direct has found that the average savings balance of offset mortgages has risen by 19 per cent to £33,243 over the past two years.  And, people with offset mortgages have saved around £1.9 billion in reduced mortgage interest since 2009, compared to the £534 million they would have received had they invested their cash in the best savings accounts.

Richard Tolchard, senior mortgage product manager at First Direct, said: “As well as helping them pay down their outstanding loan, offsets can help shelter savers from the effects of high inflation.”