People in the North are saving more than those in the South despite being on lower incomes, research has showed.

Northerners saved an average of £84 a month during the three months to the end of June, compared with the £66 southerners set aside, according to Birmingham Midshires.

This was despite people in the North earning an average of £1,828 a month before tax, more than £500 less than the £2,382 earnings of southerners.

Overall people in the North-East, North West and Yorkshire and Humberside saved 4.5 per cent of their total income, while those in London, the South East and South West saved just 2.8 per cent.

Tim Hague, head of savings and investments marketing at Birmingham Midshires, said: ''A savings culture is more apparent in the north than the south. This is part of a financial renaissance that seems to be spreading across northern England.

''It's clear that northerners are becoming increasingly financially savvy, realising the benefits of putting aside money for a rainy day.