More people are dipping into their savings to splash out on a holiday, and fewer are doing so to pay down debt as confidence in the economy improves, research has found.

The appetite to save money generally is increasing, with 67% of people now saying they save regularly or whenever they can, marking a 2% increase over the last 12 months, according to Lloyds Bank's savings index.

Instant access accounts were found to be the most popular type of savings product, with 52% of over 3,500 people surveyed saying they have this type of account. This was closely followed by cash Isas, with 51% of people saying they had one.

The number of people accessing their savings to avoid going overdrawn has dropped by 3% over the last year to 17%, but the proportion paying for a holiday through their savings has risen to 31%, from 26% a year ago. A holiday is now the most popular reason for people to withdraw money from their savings.