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ISA season boosts savings levels

ISA season boosts savings levels

Category: Savings

Updated: 20/07/2010
First Published: 02/06/2010

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The ISA season has boosted savings levels, figures have revealed, suggesting Britons are making a concerted effort to turn away from borrowing.

More money was placed into savings accounts with the UK's building societies than was withdrawn during April, according to data from the Building Societies Association (BSA).

A net inflow of savers' money totalled £537 million in April, a contrast to the previous month when a net outflow of £318 million was reported.

It is just the second month out of the last 12 that more has been saved into accounts than has been withdrawn.

A rush to place money in ISAs during April had a major bearing on the increase in savings levels, said Adrian Coles, director general of the BSA.

"Mutuals have been able to attract savers by offering competitive rates, especially on popular ISA products," he added.

"However, maintaining positive inflows will remain a challenge while the Bank Rate remains low as savers may seek higher returns elsewhere, albeit at greater risk, or may opt to repay debt instead."

Separate figures from the Bank of England showed that consumer credit fell by £0.1 billion in April, compared with March, with the value of loans and other advances dropping by £0.3 billion.

Credit card lending in April did record a rise of £0.2 billion compared with March, a figure which was consistent with the previous six month average.

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