Saving isnt an often occurrence anymore and people in the United Kingdom back this up by spending a lot more than they invest. Your savings can increase your quality of life and effect where you live in the future. Think about it, what would you do if your car suddenly quit working What would you do if interest rates rose and you had to fork out extra for your mortgage? What would you do if you suddenly had to travel to see an ill friend?
Saving your money within an account can be an excellent source of immediate funds for an unexpected emergency. Of course you could use forms of debt such as credit cards or loans but these carry hefty interest rates and could be a downwards spiral.
Savings is a must so try to find the best savings rate available and then transfer as much as possible routinely into the account every month.
Have a look around at different types of savings accounts before making your decision some may yield better savings rates
When you save in a savings account in the UK then you will be taxed at source before you see your interest and the rate you are taxed depends on which tax band you fall into. If you need to tell the government and bank to not tax you then use the R85 form to do so.
One thing people should definitely consider is an ISA (Individual Savings Account), the government of the United Kingdom, created these types of accounts in efforts to encourage residents to save their money. This account will allow you to invest up to £3600 yearly tax free and will also yield great interest rates.