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    More people believe now is a good time to start saving, the Nationwide Savings Index has revealed.

    In July, the index increased by two points, while the importance of savings index saw a rise of 13 points when compared to the previous month.

    Half of those questioned believe now is a bad time to save, marking a four per cent decline in figures from June, and 46 per cent think government policy discourages them from putting money aside.

    Andy Hutchinson, head of savings at Nationwide, commented: "It has taken some time for this shift in attitudes to take place, perhaps because of the very large cut in interest rates over the last year."

    He said that the findings are "very encouraging" and that they indicate that confidence is beginning to return to the savings market.

    Andrew Hagger, spokesperson for Moneynet.co.uk, recently revealed that people are generally more positive about their savings than they were six months ago.

    People are generally more prudent with their cash, he suggested, which may partly be due to job insecurity.

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