More Scots saving for a rainy day

SCOTTISH families are defying a squeeze on incomes by cutting back on luxury spending and saving more money each month.

The average household is putting aside more rainy day cash than ever before, at £72 a month, up from £50 a month last spring.

The increase comes even as Scots have seen incomes fall by 9 per cent over the last year, according to the latest family finances report from Aviva.

However, it also shows that while some are saving more, the number of households unable to put any cash aside has also risen. Almost a third of Scottish families are saving for a rainy day, yet another 30 per cent, a record low, are not saving anything.

Households in Scotland have been more successful in keeping down their debts, with the average amount in unsecured loans – £4,500 – comparing well with the UK average of more than £11,000.