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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 It is now over 6 months old so the content may be out of date.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.

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