Official: we don't like saving for a rainy day

People prefer to save for a specific goal rather than just put money aside for a rainy day, research showed today.

Only a third of people say they are building up an emergency fund, while the rest save for a distinct purpose, according to Marks & Spencer Money.

The most popular reason to save is for a holiday, with 56 per cent of people saying they are putting money aside to pay for a break, while 29 per cent are saving for something new for the home. About 27 per cent are saving towards a deposit for a house, while the same proportion are saving for a car.

Laurel Powers-Freeling, chief executive of M&S Money, said: "The important thing is to make sure that whatever savings you have are working hard for you."

The M&S Money survey was carried out by YouGov, which questioned 2,380 people across the nation.