A new report from First Direct, the bank, warns that one in three UK households have less than £250 in accessible savings.
A fifth of all households have no savings at all.
The bank said that £250 is the equivalent of three days’ average monthly household take-home pay. With average monthly outgoing currently at £1,536, these savings would last just five days.
Those aged between 25 and 34 are the least prepared for financial emergency, First Direct said after a survey of over 1,000 households.
Bruno Genovese, head of savings at First Direct, said: “These findings demonstrate a worrying lack of financial preparation among the British public. With the current climate of uncertainty, it is of utmost importance that families are setting aside a realistic sum of money to be used in emergencies.”
He said that as a “general rule”, it is advisable to have three months’ salary set aside in accessible savings for a rainy day.