PEOPLE in the North-East have the lowest average savings in the UK, a survey has revealed.

More than half of households fail to save money regularly, according to the research, by Tesco Personal Finance.

The research also reveals that although the North-East has less income per head than the UK average, at £380 a week against the average of £480, people also spend less, giving them a potential £82 a week they could be saving.

Almost half save in converted building societies rather than banks.

The North-East also has one of the highest proportions of households without any savings or investment accounts, at 13 per cent.

David Anderson, head of savings at Tesco Personal Finance, said: "Putting money away for a rainy day is clearly not high on the agenda in the North-East.

"And of those that are saving, most are reluctant to take risks and prefer to stick to banks and building societies rather than testing out the new players.

"They should ensure that they are getting the best deal."