Savings on the rise
People are saving more money than ever before, new figures suggest. According to the British Bankers’ Association (BBA), the amount of money that was deposited in savings accounts doubled in April. Personal savings accounts registered an extra £5.8 billion last month, £3 billion up on the figure for March and the highest rate of saving since the BBA started its records. The level of monthly savings for the previous six-month period was just £2.4 billion. With consumers showing signs of wishing to spend less and save more in the face of the economic slowdown, many people have taken advantage of the high interest rates offered by a number of banks and building societies. The banks and building societies have been raising interest rates on their savings accounts – some are 2 per cent above the Bank of England’s base rate – in order to attract more funds as a way of offsetting the higher costs of their own borrowing, a result of the credit crunch. Date:29 May 2008
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