Which region in Britain is worst for saving?

Billions is squirreled away in savings accounts every year, but new data shows that households in some areas of Britain have as little as £71 tucked away.

The research from Hargreaves Lansdown shows that more than a third of households don't have enough emergency savings to cover essential expenses if something goes wrong. 

Here, we look at the areas with the smallest and largest savings pots – and share practical tips for building your nest egg, whatever its size.

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What's the worst region for savings account pots?

New analysis by Hargreaves Lansdown shows huge regional differences in the amount households hold in variable and fixed-term accounts.

This map shows the median average (the middle value) of savings across England, Scotland and Wales. Figures include households that don’t have any savings at all.

As you can see, households in the North East and North West have the smallest savings pots in Britain, with a median average balance of just £71. Yorkshire and the Humber aren't far behind, with £126 in savings.

At the other end of the spectrum are the South East and East of England, where households have nest eggs totting up to £2,198 and £1,136 respectively.

• Find out more: best savings accounts 2025

What about cash Isa savings?

Hargreaves Lansdown also looked at cash Isa pots and found a similarly large gap between the regions.

This table shows the median average amount held in tax-free accounts, excluding households with no Isa savings. Results are ordered by value.

The South West is bottom of the pile for cash Isa funds. Households here have an average holding of £4,770. Yorkshire and the Humber is second to last, with household cash Isa savings of £5,171.

London tops the table for cash Isa pots. Households in the capital have an average of £10,216 stashed in cash Isas – more than double that of savers in the South West - while the South East comes a close second with £9,246 worth of tax-free savings.

• Find out more: best cash Isa rates 2025

A third of Brits lack emergency savings

Working people should try to have enough emergency savings to cover three to six months’ worth of essential expenses, and retirees need cover for one to three years. 

But when Hargreaves Lansdown used the same data to calculate the proportion of households likely to have enough emergency savings, it found that an average of 35% of households across Britain likely don't have sufficient funds to sustain them in times of money trouble.

A breakdown of regional data found that people living in the North East, North West and Yorkshire and the Humber are the least prepared – 59% – while households in London and the South East are the most secure, with 72% and 71% respectively.

Why do some regions fare better than others?

Higher average incomes and employment in the South East help explain larger savings pots and stronger emergency funds.

Londoners have the largest Isa holdings yet more modest savings account balances. According to Sarah Coles, head of personal finance at Hargreaves Lansdown, London’s diversity means those in less affluent areas with little or no savings pull the median down.

At the other end, lower average earnings in the North East correlate with smaller balances and weaker emergency funds. Yorkshire and the Humber’s averages are similarly affected by less wealthy areas balancing out more affluent ones.

5 ways to grow your savings 

It's important that your savings are working as hard as possible, whether you have £100 or £10,000 in your pot. Here are a few ways to make sure that happens:

1. Choose an inflation-busting account

It's important to choose a savings account with a rate above the current CPI inflation figure. If the interest rate on your account is below it, your savings will effectively lose value over time.

With savings rates steadily dropping and inflation remaining stubbornly high at 3.6%, you should consider grabbing a top deal now before it vanishes.

This table shows the top rates currently available on savings accounts, ordered by term. 

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2. Start small with an instant-access or regular saver

As the name suggests, instant-access accounts let you withdraw money whenever you need to – and the same goes for paying in money. They are therefore ideal for building an emergency savings pot.

Many market-leading accounts also accept very small deposits, so you don't need a big lump sum to benefit from higher rates.

Regular savings accounts are also great for savers who want to get into the habit of saving. You can usually save between £250 and £500 a month.

But it's important to remember that while they offer impressive-looking rates – as high as 7.5% – your money will be building up gradually, so the overall return might be more modest than you expect.

3. Fix for higher long-term returns

Once your nest egg is bigger, consider locking into a fixed-term savings account. 

Unlike instant-access products, which have variable rates that can change at short notice, your returns will stay the same for the agreed duration of the account.

They last anywhere from a couple of months to seven years, but the downside is you won't be able to make a withdrawal until the term is up.

4. Make the most of tax-free savings

There is a limit to how much interest you can earn on your money before you face a tax bill, and savers with bigger pots are more vulnerable to facing a tax bill.

The personal savings allowance means basic-rate taxpayers can earn up to £1,000 a year in savings interest tax-free, while higher-rate taxpayers get a £500 limit. Additional-rate taxpayers have no personal savings allowance.

Opening an Isa, which allows you to deposit £20,000 a year tax-free, is your best bet if your nest egg grows large enough to face a bill from HMRC.

This table shows the top cash Isa rates, ordered by term:

Premium bonds are another popular way to save without a tax burden. You can hold up to £50,000 in an account with National Savings & Investments and could win up to £1m in the monthly prize draw. 

The downside is that the chances of winning any cash prize are slim – just 22,000 to 1 – and you won't earn any interest on your investment.

5. Try a savings platform

Finally, if you're spreading your money around and opening multiple accounts, consider signing up to a savings platform. 

These websites not only help you source market-leading accounts, but once you're registered, you'll only have one set of login information to remember. And to ensure your savings don't languish in a low-paying account, the platform will usually get in touch to remind you when any bonds are due to mature. 

However, the convenience offered by savings platforms comes with a few caveats. Because savings platforms work with a set number of banks and building societies, you could easily miss a top rate offered by a provider not listed on the platform's website. Some also charge fees.