Alliance & Leicester: Put bonus in savings account

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Nearly eight out of ten Britons spend pay rises and bonuses without considering putting some in their savings account, according to Alliance & Leicester.

In research conducted by the bank, 79 per cent of people said they had already "mentally spent" pay rises before receiving them.

Meanwhile, one in three claimed their bonus would have to be doubled in size before they would consider depositing it into an individual savings account (Isa).

Ross Dalzell, manager for savings at Alliance & Leicester, advised: "Bonuses and pay rises are essentially extra payments which can be put aside without impacting too heavily on your lifestyle."

"Moving money into a savings account or cash Isa is easy and hassle free," he added.

However, 17 per cent of people stated that they leave the additional money from pay rises in their current account, potentially missing out on extra interest earnings.

Isas linked to the Alliance & Leicester Premier current account pay an interest rate of seven per cent, with the bank promising to keep the figure at least one per cent above the Bank of England base rate.

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