Savers favouring societies - Savings - News - Moneyfacts


Savers favouring societies

Savers favouring societies

Category: Savings

Updated: 31/03/2009
First Published: 30/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers deposited a record amount of money with building societies in February, according to the latest figures from the Building Societies Association (BSA).

Societies reported taking total net deposits of £1,595 million last month, the highest net intake for the month of February on record and an increase of 18% on the same time last year.

"The record receipts shows that building societies' attractive savings products are helping them to compete for deposits," said Brian Morris, head of savings policy at the BSA. "Despite the Bank Rate being so low people are still keen to save, probably in response to the uncertain economic outlook and reduced job security."

However, it was also revealed that there was a net withdrawal of £108 million from cash ISAs held with building societies in February, a figure which compares unfavourably to the £130 million received in the same month in 2008.

With interest rates at a record low, savers have increasingly been moving their money to new providers in an attempt to secure a better return.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.

Number of savings accounts falls to record low

As if the continued drop in savings rates wasn’t bad enough, our latest research reveals another blow to already hard-pressed savers, with the number of accounts available having fallen to a record low.