The number of families putting aside monthly savings has risen to 76 per cent in 2012 - despite a rising cost in living, according to Aviva.

The latest Aviva Family Finances Report, which questioned over 12,000 consumers aged 18-55, found that the number of families saving had risen from 72 per cent a year ago to 76 per cent.

The average amount held in savings and investments was £1,228 although those in living in London had more than double that amount saved with an average of £3,332 saved.

The percentage of families not saving anything on a monthly basis was down from 37 per cent to 33 per cent.

Men were saving more than double the amount women saved with the average male saving £70 on a monthly basis compared to the average female who only saved £32.

Uptake of financial products had increased with 42 per cent of families taking out life insurance, 40 per cent having at least one Isa, 19 per cent having a private pension and 14 per cent having critical illness cover.

Richard Kelsall, head of savings at Aviva, said: “The latest Family Finances Report has found that over the last 12 months a growing number of families are trying to save money on a regular basis and as a result, a greater number now have larger savings pots.

“In addition, more families say they now have pensions, savings accounts and Isas which suggests they are reacting to the difficult financial situation and seeking to provide a buffer to protect themselves and their loved ones.”