Almost two-thirds of us have money left in our current account at the end of the month, with an average balance of £316.15 However, just one in five (20%) make the most of this money by moving it into a higher rate savings account.

Although one in seven mean to transfer money each month, they admit they "forget or cannot be bothered with the hassle."

The study was carried out to help promote a solution that Yorkshire Bank offers – funds can easily be transferred in to its Savings Account Plus from a linked current account and then earn a competitive rate of 4.32%.

Gary Lumby, Yorkshire Bank’s head of retail, said: "Many of us find ourselves running short of money but sometimes we can be our own worst enemy by not making the most of what we do have."

"Too often we fritter away any spare cash we may have at the end of the month, when putting just a little aside can make a big difference when we really need it."

According to Yorkshire Bank calculations, if all those people who leave an average of £316.15 a month in their current account switched it to something like Savings Account Plus, they would benefit from an extra £88.56 in interest over 12 months. Therefore, as a nation, Britons could be missing out on up to £1.7 billion in interest each year.

Fears for tomorrow for today’s younger generation

Almost two in five people are concerned today’s younger generation could struggle financially in years to come as very few have savings.

Sixteen to 24 year olds are likely to struggle most, according to Yorkshire Bank’s research, with more than one in four having no savings account at all and the same number having less than £250 in savings.

Nearly one in three admit to wanting to save, but say they either forget or just can’t be bothered to transfer money across - more than double the national average of 14%.

Do as I say, not as I do

Saving money appears to be in the blood with 59% of parents with a savings account likely to encourage their children to stash some cash regularly. In comparison, parents who have no savings themselves are unlikely to encourage their children to save – only 22% would do so.

Gary Lumby said: "Adults should get into the saving habit as soon as possible. As our research shows, today’s younger generation are reluctant savers and often have to rely on the ‘Bank of Mum and Dad’ for financial support."

"However, in 20 years time, when today’s generation have children of their own, what will they do if their children ask them for financial support? With no savings account of their own, the ‘Bank of Mum and Dad’ may well be closed. The result will be a greater number of people seeking credit."

Plain and simple

For those who are considering saving, 46% would choose to set up a standing order or regular payment to automatically take money out of their account, so they would not miss it.

More than half of those surveyed by the bank currently pay their utility bills via direct debit.

Gary Lumby said: "The easiest way to save is through setting up a regular payment from your current account to a savings account, as it requires minimal effort to set up. Once it’s in place it manages itself with a set amount of money regularly transferring into your savings account on a monthly basis without having to lift a finger!"

Jammed in jars

One in 10 people still save money the old-fashioned, non-secure way at home, either by filling jars or by stashing notes under the mattress instead of in a bank account.

Gary Lumby said: "People appear concerned they can’t afford to save because of other financial commitments such as mortgage or student loan repayments and paying into a pension. However, these same people are also leaving money sitting idle in their current account each month. As a result they’re effectively missing out on ‘free’ money in the form of interest by not putting their hard earned spare cash into a savings account."

"It’s astonishing in this day and age people would rather let their hard earned cash gather dust rather than interest by squirreling it away in drawers and jars at home. Not only is this unsafe, but it’s also unwise as they’re not making the most out of their money."