New research has found that Brits are saving at a faster rate than in 2010 as the amount of cash being channelled to repay debts falls.  A leading website has found that Brits paid back 7p of debt for every pound saved in the first quarter of 2011, the lowest level since the middle of 2009.

Brits’ savings up by £5.8 billion more in last quarter

The research published in the Guardian found that British consumers saved £26.9 billion in the first three months of 2011, compared to £21.1 billion in the final quarter of 2010.  At the same time, the amount of debts being repaid fell from £2.4 billion to £1.8 billion.

Most financial experts suggest that you should concentrate on allocating cash to paying off debts rather than building up savings.  With interest rates on savings accounts at historic lows, paying back expensive debt should be most people’s first priority.

However, the newspaper reports that ‘it is still vital to have a savings fund in case of emergencies.’

Newspaper highlights best choices for savers

The Guardian highlights three accounts which savers should consider.  Firstly, if you’re looking for an instant access account, the Nationwide Flexclusive seven day account pays a rate of 1.75 per cent above Bank of England base rate with a current rate of 2.25 per cent.

The account is only available to Nationwide current account customers but is available through branches rather than online.

The Guardian also suggests the Barclays two year flexible savings bond.  This account pays 3.2 per cent for two years (rising to 3.5 per cent for balances over £50,000).  You can withdraw up to 30 per cent of the capital invested without charge.

Finally, the Coventry Building Society is offering 3.05 per cent on its eNotice online savings account.  You can manage your account online and you have to provide 30 days’ notice for any withdrawals.