Record year for society savings accounts
Building Societies saw a record year for savings deposits in 2007, according to the latest statistics from the Building Societies Association (BSA).
Deposit levels reached £16.1bn in 2007, almost double the £8.3bn saved in 2006, the BSA’s figures showed. Previously, the record for savings inflows in any one year was £13.6bn in 1988. Adrian Coles, director general of the BSA, said: “The majority of the deposits came in the latter months of 2007, so a significant proportion is almost certainly funds withdrawn from Northern Rock bank.
“However, a substantial amount is also likely to be from households increasing the amount they save in preparation for a more uncertain year ahead. With competitive interest rates on offer and uncertain times in the equity markets, building societies continue to be an attractive home for people’s savings.”