Savers prefer to stash cash at home
An estimated one-in-10 people think their money would be safer under the mattress than in a bank or building society, according to Newcastle Building Society.
Research from Newcastle found that confidence in banks has declined by 5% over the past year, with less than a quarter of savers considering them the safest place to invest their money. Furthermore, the number of people who are unsure about the safest place to put their money has risen to 13%.
Wendy Lee, spokesperson for Newcastle Building Society, said: “These findings are a stark sign of the times, but they are also exacerbated by the hype surrounding the credit crunch. Unfortunately, some savers now have an exaggerated view that investing their money with a building society or bank can be a risky business, which is not the case.
“Building Societies have an excellent track record for providing a safe place for savings for those with a little, or a lot, to invest. While we welcome the news that building societies are mostly favoured by those aged 35 and above, societies are also an attractive option for the younger generation and offer a good variety of competitive savings rates.”