For many people, a savings account is an effective way to save money towards a specific goal, and putting some money aside each month will result in an increasing sum of cash for future use.
Just cutting back on those everyday extras will allow a saver to allocate a portion of their regular income towards such rewards as a holiday, some new furniture, or a special family occasion.
Savings was once done with a porcelain piggy-bank, which nowadays is perhaps too small to accommodate many peoples' savings ideals.
Instead, a bank or building society is a more viable option for saving money.
Savings stored in an account are more secure, and the more that is put into the account, then the more interest is earned.
Interest is generally earned on accrued capital, regardless of the initial amount invested, meaning a saver will start to earn interest on the newly accrued amount - not just the first amount deposited.
This is known as compound interest.
However, this can be a slow process, often taking many years for an original deposit to grow to a substantial level.
The intelligent saver also needs to input regularly and avoid dipping into the pot too frequently in order to benefit from the savings.
The biggest issue facing savers in any economic climate is the impact that inflation can have on the sum amassed in a savings account.
In July 2008, UK inflation jumped to stand at more than double the Government's 2% target, and many consumers might not be aware of the negative effect this could have had on their savings accounts.
With inflation predicted to rise even higher in 2008, many people are going to be adversely affected, often without realising to what degree.
Fortunately, there are options to avoid the possible pitfalls.
Savings accounts can vary greatly between financial institutions on everything from interest rates to minimum deposits to the required notice period given for withdrawals.
Instant access accounts have seen a surge in popularity in recent times, with average interest rates ranging between 3.
3% and 4.
14% before taxation.
Although this kind of account has many advantages - particularly the ease at which money can be accessed - it can also be more affected by inflation than other options.
However, smart savers can find greater security in accounts which offer higher rates of interest.
These accounts are sometimes limited, however, in the amount of notice required to access the savings.
An alternative could be to look to the internet and the various internet-only savings accounts offered by many banks and building societies.
Many such internet savings accounts, for example, combine the functionality of instant access accounts with competitive interest rates, although these preferential rates are usually only payable for months where the savings remain untouched; if savings are accessed, then typically a lower rate is paid for the months affected.
However, there are a multitude of savings accounts available and it's always a good idea to research and ask for advice if you're unsure, as well as to ensure you get the most out of your savings efforts.
It is also worthwhile to regularly review banking and other financial arrangements, as a few simple changes in these areas could have a huge impact on your savings arrangements in the future.