Savers not put off by low returns

More than eight in ten UK adults save money on a regular basis, according to figures published today.

Almost half do so in a cash savings account, despite the absence of products keeping pace with inflation, research by Standard Life found. Just 17 per cent of adults saving use investment-based products, compared with 18 per cent using premium bonds, while 13 per cent use pension investments and 8 per cent use other products, such as investment bonds. Of those not using stock market-based investments, 13 per cent said they didn't understand how they worked and one in ten thought such products were only suitable for the very wealthy.