Regular financial savings may aid enhance sleep, according to a recent study.

Researchers at Bristol University discovered that setting away even a tiny amount each month improved people's ability to unwind and feel more positive about the future.

It was reported that regular savers on low incomes report life satisfaction levels comparable to those of affluent non-savers.

A quarter of UK adults have savings of less than £100, surveys have suggested.

Despite an improvement in bank and building society interest rates, saving money has been more difficult in recent years due to dramatically rising expenses and food costs.

An estimated six in 10 people have a savings habit, and charities argue that setting money aside - even when on a small income - improves financial resilience.

Now the report by Bristol University's Personal Finance Research Centre has suggested regular saving leads to improved life satisfaction, even if only a small amount is set aside.

The report suggested this was the result of being less anxious about money, less likely to experience problem debt, or being better able to cope with unexpected events.

The situation is somewhat complicated, as there are a number of other variables at work, such as whether savings had previously been accumulated and how conditions vary among age groups.

Researchers considered various studies, including one tracking the savings of thousands of people over a 10-year period.

They suggested an improvement in life satisfaction from saving, but also a detriment when not saving.

However, other life events had a bigger impact. For example, moving home or getting married improved mental wellbeing to a greater extent. Losing a job or having children created a relatively larger mental wellbeing deficit.

Returns expected to fall

Interest rates paid by savings providers have improved during a period of higher interest rates.

At present, the average easy-access account pays interest of 3.12%, according to the financial information service Moneyfacts. Locking money away for a year carries an average return of 4.65%.

However, returns are expected to become less generous when the Bank of England reduces benchmark interest rates. A first drop could come in August.

Andrew Gall, head of savings at the Building Societies Association, which funded the research, said: “While we appreciate that some people simply won’t be in a position to save right now, these report findings show why everyone should be encouraged to save a little, if they can, when they can."

The report said providers should make savings accounts simple, flexible and use incentives to get customers to save.

What are my savings options?

• As a saver, you can shop around for the best account for you
• Loyalty often doesn't pay, because old savings accounts have among the worst interest rates
• Savings products are offered by a range of providers, not just the big banks. The best deal is not the same for everyone - it depends on your circumstances
• Higher interest rates are offered if you lock your money away for longer, but that will not suit everyone's lifestyle
• Charities say it is important to try to keep some savings, however tight your budget, to help cover any unexpected costs