Bank customers who set a savings goal are saving more than double the amount of money as those who don’t, according to data released by the Royal Bank of Scotland
The Bank is launching a new savings goal tool in their mobile banking app which allows them to set a goal, set up automatic payments and monitor progress towards their goal.
The research suggests the most popular goal is saving towards a holiday, followed by a house deposit, and then ‘saving for a rainy day’.
On average a customer with a goal is saving £29 a month, compared to £13 per month for those without a goal, the research shows.
Setting up a standing order also helps boost savings. Customers who set up a regular fixed payment save on average £450 more per year.
Allan Hardie, head of Save & Invest at RBS, said: “We are here to help our customers achieve their goals and that’s why we’re launching the new Savings Goal Tool, which customers will see in their mobile banking app from this week, making it simple and easy to set a goal.”
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Michael Royce, savings expert, Single Financial Guidance Body said: "Saving for emergencies or for a specific goal can help millions of households build their financial resilience and is something we want many more people to do if their finances allow.
“Defaults such as setting up a standing order can be a powerful motivator to building savings, so it will be interesting to see the impact of any features in the app that allow people to select defaults such as this."
