Ten million people – 21 per cent of British adults - admit to using a piggy bank, penny jar or hidden place at home to save money, according to a survey by Britannia Building Society.
Estimating that on average, each holds £10, there is more than £100million sitting idle in the UK’s piggy banks, says Britannia, and unless people start putting their money into high interest accounts rather than leaving it sitting around the house, they are missing out on considerable interest – especially following recent interest rate rises.
"People probably like to keep money in piggy banks and money boxes because they can visibly see how much money can be collected in a fairly short period of time and it gives them "instant access" to cash,” says Neville Richardson, Britannia's Group Chief Executive, “but the clever thing to do is to convert loose pennies into pounds by transferring the money into a savings account which will pay you interest.”
The research revealed that women are more likely to stash their cash away in the house than men, with 22 per cent admitting to using a piggy bank compared to 19 per cent of men.
And younger people are more likely to use them than pensioners – only 9 per cent of the over 65s use them, despite the stereotype that old people save their pennies in a biscuit jar - whereas 30 per cent of 25-34 year olds admit to saving in a piggy bank.
And, says Britannia, even though most children have a piggy bank and it is a good way to start learning about the value of money, equally, youngsters should be given the chance to earn interest on their savings.
"Piggy banks are a great way of teaching children about the meaning of money, continued Mr Richardson, “but it's also important to make sure we aren't robbing our children of the interest they could be earning on their savings.”
Compare leading savings accounts
and find out more about child savings accounts
and child trust funds