Top things people are saving for

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One in four Brits don’t see the point in saving at the end of the month – if they’ve only got a few pounds to put away

And 12 per cent believe it’s not worth putting anything less than £100 into savings, despite experts advising to start now, and start small.

The research of 2,000 adults found 57 per cent struggle to find the motivation to put money aside to grow.

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However, nine per cent check their online bank accounts multiple times a day.

Following the findings, smart money app Plum has created a tool, to launch Plum Interest, which shows just how big those few pounds could grow over time thanks to higher interest rates.

By inputting the small amount you are able to set aside each month, the tool will show you how much you may have accrued after a year and two years with a more competitive rate.

Victor Trokoudes, founder and CEO of the saving and investment app, said: “If you’ve been putting money away for more than five years, that’s excellent – but not everyone has the same motivation, especially if we’re talking small amounts of money left at the end of the month.

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“But there really is no time like the present – even £20 a month, over the course of just two years, will add up to close to £500 and that’s before any interest.

“It can be tempting once you get to the end of the month to treat yourself to something or just roll over what’s left into the new month’s expenses.

“But if there are some extra things you’d like to have in the next year or two, the savvy will typically know when to spend and when to squirrel it away.”

The study also found only 39 per cent describe themselves as savvy savers and are slightly better at putting their funds aside for short-term goals than long-term ones.

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But 27 per cent reckon they’re more likely to spend any available funds left over at the end of the month if they’re not actively saving for a specific goal.

And 31 per cent don’t think it’s possible to get a high rate of interest unless you lock your money away for at least a year.However, 37 per cent of those polled, via OnePoll.com currently putting money aside for something, including a holiday (18 per cent) or simply for a rainy day (12 per cent).

It also emerged just 14 per cent know what a Money Market Fund is – an increasingly popular alternative to traditional savings accounts that focuses on short-term, low-risk investments with interest tending to closely reflect central bank rates.

A quarter (24 per cent) incorrectly believe it is something that specialises in foreign currencies, while seven per cent think it’s something that allows you to change out-of-date cash for new money.

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Victor Trokoudes, from Plum , added: “These days you definitely don’t need to lock your money away for years to take advantage of higher interest rates – although some people think that you do.

“For example, putting money into a flexible alternative like a Money Market Fund could be a good way of reserving it for shorter term goals, especially if you think you might need to dip in from time to time.

“It doesn't matter how small your initial investment is - with time and patience, it can grow into something more substantial in as short a period as one or two years, taking advantage while interest rates are high.

“But it always helps to have a specific goal in mind.”

Top 20 things people are currently saving for: 

1.    A holiday

2.    A rainy day

3.    To retire

4.    To move house

5.    A new car

6.    A home renovation/extension

7.    Gifts for family and friends

8.    Clearing debts

9.    New furniture

10.   In case of a job loss

11.   Garden improvements

12.   A wedding

13.   A future reduction in income

14.   A new item of clothing

15.   Children’s education (school or university fees)

16.   To buy a holiday home

17.   To have a child

18.   A car for their children

19.   A home gym

20.   A hot tub

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