Jul 1 2008
Savers in the UK are flocking to building societies in search of good returns for their assets, it has been claimed.
According to the British Building Societies Association (BSA), its members received close to £853 million in deposits over the course of May, which was £245 million more than the same month in 2007.
The association insists that an increasing number of people are preferring to put their savings into building society accounts rather than hold them in stocks and shares.
However, net receipts into cash-based individual savings accounts were down to £272 million for the month compared to £404 million in May last year.
Adrian Coles, director general of the BSA, said: "High interest rates offered by societies, coupled with attractive product ranges, have seen customers continuing to flock to societies with their savings."
British consumers are keen to save but in many cases are unable to do so, Howard Archer from analyst firm Global Insight said last week.
