A new report by Bristol University claims that regular saving helps people sleep, relax, and become more optimistic. According to a study carried out for the Personal Finance Research Centre by Bristol University, even small monthly savings can improve life satisfaction. This is particularly true for those with low incomes, whose average life satisfaction levels were found to approach that of richer non-savers.

Despite the struggle to save with rising bills and food prices, a quarter of adults in the UK are now saving less than £100; this is despite interest rates having improved recently. However, six in ten continue the habit of saving regularly, which, according to charities, is important to show financial resiliency.

A report by Bristol University cites regular saving as associated with reduced money anxiety, problem debt, or high coping mechanisms in case of shocks. However, life satisfaction is influenced by other factors which include existing savings, life changes, and age. For instance, moving home or getting married ranks higher in boosting mental well-being compared to saving, while loss of job or having children worsens it.

Easy access accounts pay an average interest rate of 3.12%, while the rates for one-year fixed accounts average 4.65%. However, these returns will slide back if the Bank of England cuts benchmark interest rates, as it may do by August.

Andrew Gall of the Building Societies Association - which commissioned the research - says it's important to save if you can. The report calls for savings providers to offer straightforward and flexible accounts that have incentives to saving.

To get the maximum they are worth shopping around for the best account. When it comes to old accounts, loyalty counts for nothing; they often have terrible interest rates. Savings products are so disparate, the best deal depends on your situation. In general, one can get higher interest rates with longer-term accounts, but this may suit not everyone. As many charities point out, with whatsoever tight budget, it is very important to maintain some savings to create a flank against unexpected costs.