One in four (23%) of the population save a portion of their wages as soon as they’re paid. Gen Z are the biggest savers with just under half (48%) putting away 20% or more of their monthly income, this decreases with age with only 12% of 45-54 year olds doing the same.

The findings come as HSBC UK rolls out ‘Savings Goals’, a new feature on the HSBC mobile banking app designed to help customers develop a healthy savings habit.

The most popular savings goals according to the research are travel, emergency funds and home improvements, with 20% of the Gen Z population saving towards a house deposit.

Despite their commitment to saving, under 24s say they are most likely to dip into their savings pot to fund everyday living expenses (21%) or pay off debt (20%), making an average of three withdrawals each year. They’re also most likely to worry about whether they are saving enough – with one in five (22%) feeling stressed about it.

HSBC Savings Goals helps customers identify, plan and manage savings goals. Customers can choose from a list of short to medium term goals including travel, a new car or new business venture – and set the due date and amount target. They can then set up a regular transfer of funds into their savings account and track their progress. For longer term goals, Investment Goals is also available on the app.

Commenting on the launch, HSBC UK’s head of everyday banking, Pella Frost, said: “Saving money can be easier when you have a goal in mind. With Savings Goals you can make a plan for achieving your aims and contribute on a regular basis. This is another step forward in helping our customers build great savings habits and achieve financial resilience.

“Before opening a savings account, we always recommend you review your budget so you know how much you can afford to lock away and for how long.”

Last month HSBC UK launched its first Fixed Rate Cash ISA in over a decade. Offering an interest rate of 4.60%, the Fixed Rate Cash ISA complements the existing variable interest rate Loyalty Cash ISA. Since the launch, balances have grown with some customers saving tax free for the first time while other customers have transferred in their existing Cash ISAs to take advantage of higher fixed rates.

Pella Frost added: “Fixed rate ISAs are an excellent way to save for short term goals such as booking a holiday or buying a car. By locking your money away for a set period at a fixed interest rate, you can develop a healthy savings habit.”

The research also found one fifth (20%) of the population do not stick to their savings budget with a further 11% not having a budget at all. HSBC UK offers free financial health checks for customers to help with budgeting and saving.

Other findings showed that 20% of 16-24 year olds have an easy access cash ISA, when opening a savings account 34% value customer service above financial performance (28%), 27% of people are not able to save any money each month, 28% can only save 1-10% of their income each month and on average people save 13% of their monthly income.